Fannie Mae Bans Evictions of Renters

This has to be good news for a lot of renters who are staying in their homes awaiting foreclosure. The mortgage finance company, Fannie Mae, said last Tuesday that it has adopted a policy allowing renters to remain in their homes even if their landlord enters foreclosure.

The new policy will allow residents of about 4,000 properties to sign new leases with Fannie Mae while the property is up for sale. Fannie Mae's chief operating officer, Michael Williams, said in a statement that the change should help bring a measure of stability to communities impacted by high foreclosure rates. Freddie Mac, sibling mortgage financier, is working on a similar policy. That is good news for renters who expected to have to move from their homes soon.