Furor Over Fannie Mae's Foreclosure Decision

RJ Brown

In mid-June, lender Fannie Mae made a decision that threw many in Hawaii for a loop.

The company, which operates in the secondary mortgage market, announced that it would convert all of its non-judicial foreclosures in Hawaii to judicial foreclosures, meaning homeowners facing financial troubles would face a judge rather than a mediator in resolving their loans.

The move generated criticism from lawmakers and advocates, who said Fannie was skirting the intent of what some have said is the nation's strongest foreclosure law, just passed by the state Legislature.

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