Fannie Mae and Freddie Mac are asking banks to repurchase home loans that did not meet certain requirements, per their contracts with the lenders, but many financial institutions are refusing to buy back the loans. The situation often leads to a battle between Fannie or Freddie and the mortgage lender as the banks may argue that the repayment requests are also flawed. When banks refuse to pay, however, taxpayers are ultimately forced to cover the losses. The New York Times (free registration) (6/4)
Taxpayers are on hook if banks refuse to buy back faulty loans
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About the Author: Lauryn Charles
Lauryn Charles owns and manages Accountable Financial Services Group, Inc., founded in 2007. Lauryn has many years of experience working with small business owners in the field of accounting, banking, and financial services. An accounting graduate with an MBA in International Business from Florida Atlantic University, Ms. Charles is an expert tax preparer and accountant. She is an Enrolled Agent admitted to practice before the Internal Revenue Service.
Ms. Charles supports her local community by engaging chambers of commerce, sitting on boards of directors for non-profit organizations, and providing tax and financial education to those in need.
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