August 14, 2017 / 8:46 PM / 2 years ago

Consumers' lawsuit says loans denied because of Fannie Mae inaccuracies

Fannie Mae has been hit with a proposed class action in San Francisco federal court by homeowners who say they were rejected for loans because the mortgage financing giant falsely reported that their homes had been in a foreclosure.

Filed on Saturday, the lawsuit said Fannie Mae misreported foreclosures in credit histories for thousands of consumers who had sold their homes in a short sale. In a short sale, an alternative to foreclosure, a bank allows a homeowner to sell a home for less than the amount owed on the mortgage and agrees to accept the proceeds to settle the loan.

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