Fannie Says Arbitration Not Necessarily Bad, But Clauses Aren’t Welcome on Loans it Buys
October 1, 2004
Fannie Mae this week formally adopted a policy to stop buying mortgage loans that have mandatory arbitration clauses, implementing a previously announced stance that rankled lenders. Since it announced in February that it will no longer buy loans that include mandatory arbitration provisions – a move that put it in line with Freddie Mac – Fannie has taken heat from industry groups that have complained that they were not consulted on the change. …