Home lenders are smarting these days as Fannie Mae and Freddie Mac make them repurchase bad loans. But a multibillion-dollar windfall, courtesy of the GSEs, will mitigate lenders' pain.

Fannie said last week that it will "expedite" reimbursement to mortgage servicers for the principal and interest payments they have advanced on $127 billion of chronically delinquent loans. The GSE had previously announced plans to buy those loans, all of which are four months or more past due, out of its securitized pools.

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