Skip to content

Bipartisan Senate bill seeks to abolish Fannie, Freddie

Senate bill introduced to replace mortgage reinsurers Fannie Mae and Freddie Mac with fee-collecting guarantor, Federal Mortgage Insurance Corporation, aiming to reduce the government’s involvement in the mortgage industry.

Bill 56 Will Affect Mortgage Foreclosure Law In Three Main Ways

Illinois Senate Bill 56 passed both houses and will affect mortgage foreclosure law in three main ways: 1) by making terms, such as “bona fide tenant,” consistent with the federal Protecting Tenants at Foreclosure Act; 2) by requiring petitioners (i.e., banks) to wait 90 days before they can evict pre-existing tenants; 3) by clarifying the procedure petitioners must follow if a mortgagor (i.e., homeowner) dies.