Fannie, Freddie Buyback Policy To Ease Friction With Banks

Law360, New York (September 11, 2012, 7:15 PM EDT) -- New federal restrictions announced Tuesday giving Fannie Mae and Freddie Mac a firm three-year limit on their ability to force a bank to buy back delinquent mortgages should limit fights between the mortgage giants and banks over home loans gone bust and help maintain liquidity in the mortgage market, experts say.

Tuesday's policy change from the Federal Housing Finance Agency, the overseer of the two failed mortgage backstops, is a move to ease banks' angst over Fannie and Freddie's existing, open-ended ability to force banks to...
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