The Federal Housing Finance Agency (FHFA) had sharp words early this week for state and local governments that have passed laws meant to help homeowners facing risk of foreclosure. A top official for the agency, which is charged with minimizing taxpayer losses from Fannie Mae and Freddie Mac, told members of Congress that those laws are slowing down the foreclosure process, ultimately to the detriment of everyone involved.

"In short, many state laws that stretch out the period for legitimate foreclosures — after every effort is made to avoid foreclosure and to keep homeowners in their homes — result in no added benefit for the homeowner and produce harm to the housing finance system and to neighborhoods," FHFA General Counsel Alfred Pollard said in written testimony for a Brooklyn field hearing before the House Oversight Committee.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.