Categories: News

FHFA Seeking Federal Court Intervention Over Lien Priority Statutes

The Federal Housing Finance Agency (FHFA) released a statement expressing concern over state statutes, which allow community associations to obtain lien priority over first mortgages for unpaid assessments.  This includes Colorado’s Super Lien statute.  The FHFA is asking for the federal court to intervene in order to seek help for those mortgage services that have failed their contractual obligations to Fannie Mae and Freddie Mac.  Tom Skiba, Chief Executive Officer of Community Associations Institute (CAI) stated: “FHFA is trying to protect Fannie and Freddie at the expense of association homeowners.”

Let us know what you think.  Should the federal court intervene and bail out the mortgage servicers?

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