Fannie-Freddie Forbearance Rule Sows Fears of Mortgage Hangover

Bloomberg, May 14, 2020–Joe Light, Shahien Nasiripour
The snafu has been triggered by the hastily drafted $2.2 trillion stimulus bill that Congress passed in March. But the law didn’t address long-standing policies that restrict consumers from getting new loans for a year after their forbearances end. For instance, Fannie Mae and Freddie Mac — the government-controlled companies that facilitate nearly half of U.S. home lending — won’t buy such mortgages.