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Home » Store » News » Fracking Moratorium Could Get Messy For Mortgage Lending in Certain States

Fracking Moratorium Could Get Messy For Mortgage Lending in Certain States

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Fannie Mae and Freddie Mac have generally made exceptions to their own rule regarding title impediments for properties with oil, gas, water or mineral rights, though new environmental disputes over hydraulic fracturing may change that, with “confounding implications for a particular region’s lenders,” said rating service DBRS. While contracts that allow for parties other than the property owner to utilize the land often complicate matters, the profitability of leases for resources like natural gas make those properties more attractive, because “the lease would generate income the borrower could apply...
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