February 02, 2009 – (RealEstateRama) — Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs, today welcomed Freddie Mac’s decision to allow renters to remain in properties that have been foreclosed on by the mortgage company. The decision comes after Dodd recently urged both David Moffett, the CEO of Freddie Mac, and James Lockhart, the director of the Federal Housing Finance Agency (FHFA), not to evict these renters. Today’s outcome means that Freddie Mac is now compliant with the provision that Dodd wrote in the financial rescue law enacted late last year, requiring FHFA to allow tenants to stay in their homes.
“Foreclosures, both across the country and in my home state of Connecticut, have shaken the very foundations of our communities. This decision will benefit both neighborhoods and hard-working renters who pay their rent on time and were facing eviction through no fault of their own. I am pleased that Freddie Mac is complying with the law and protecting renters from the devastating effects of foreclosure. We must continue to work to prevent foreclosures and reduce their impact where they do occur.”
