Fannie, Freddie Overseer Sets Rules For GSEs’ Sales of Delinquent Debt

The Federal Housing Finance Agency released a new set of rules for the sale of troubled mortgages by Fannie Mae and Freddie Mac, which are in U.S. conservatorship.

FHFA, which oversees the government-sponsored enterprises, will require prospective investors to prove they’ve retained a loan servicer with a track record of handling delinquent debt, the agency said in a statement March 2. Servicers also will have to offer aid to avoid foreclosures as a condition of sale.

Fannie Mae and Freddie Mac are under orders from FHFA to reduce their holdings of delinquent loans. Freddie Mac has auctioned off more than ...