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Kamala D. Harris
Regulator OKs some Fannie, Freddie foreclosure buybacks at fair value
Regulator OKs some Fannie, Freddie foreclosure buybacks at fair value

The federal regulator overseeing Fannie Mae and Freddie Mac will now allow certain foreclosed borrowers to buy back the homes they lost — so long as they pay the full current value of the property. The new policy would benefit the housing market by increasing demand for distressed homes, the Federal Housing Finance Agency said Tuesday in announcing the change. It also effectively lowers the principal on loans, something the agency has pointedly refused to do in the past. Previously, the agency had required such borrowers to pay the entire debt they owed, even if it was much more than the property's current value. “This is a targeted, but important policy change that...

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