Homeowners: Fannie Mae and Freddie Mac is not included in the Settlement

Some are asking well why not? Why is Fannie Mae and Freddie Mac not participating in or included in the Settlement?

The Settlement Does Not Apply to Loans Owned by Fannie Mae and Freddie Mac - These two Government Sponsored Agencies (GSE’s) agencies now own approx. 50% of all loans in the U.S. and up to 80% of all the subprime loans that are in the most trouble. This Settlement will provide no help for these homeowners. Even though Fannie Mae is under a Government Conservatorship, Fannie Mae actively opposes any principal reduction of its loans.

I am expecting that they are being excluded for a reason, maybe it is because the major banks were the leaders in this maze and they are getting slapped for their part. Plus it is not uncommon for Fannie Mae and Freddie Mac to have to their own programs - seperate from the big leaders in this mess.

None the less, I encourage all homeowners that are in trouble and feel that some help is better than none to go to your lender and see how they can help. I also advise you to file the same papers with the attorney general to be sure they uphold their end - lenders can be tricky. As we all know.