Fannie Mae Ceases Eviction of Renters

Washington-Fannie Mae has stopped all evictions of renters living in foreclosed single-family properties while it finalizes a new policy that will allow tenants to remain in their homes.

"Fannie is finalizing a new policy that will allow tenants in Fannie Mae-owned properties to stay in their homes if they can make their rental payments," said company spokesman Brian Faith.

Legal aid attorneys in Connecticut urged the government-sponsored enterprise to stop automatic evictions of tenants after a foreclosure. And Sen. Christopher Dodd, D-Conn., who chairs the Senate Banking Committee, supported their efforts. "This decision will bring great relief to thousands of renters who were in the wrong place at the wrong time and were being forced from their homes," Sen. Dodd said. "I expect Freddie Mac to follow suit."

Freddie had not responded to inquiries by press time. Renters involved in an estimated one-to-two-fifths of all foreclosures are an issue, according to Eric Belsky, executive director of housing studies at Harvard University. He told a NeighborWorks symposium recently that 35% of renters live in single-family homes.

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