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Fannie Mae to stop evictions in foreclosures: report


    PHILADELPHIA (Reuters) - Fannie Mae will allow tenants to remain in their homes and avoid eviction even if the building's landlord goes into foreclosure, The Wall Street Journal reported on Sunday.

    Fannie Mae, a government-controlled mortgage finance company, previously had said it would not evict tenants during the year-end holiday season.

    Despite that pledge, Fannie Mae came under pressure from a legal-aid group that threatened to sue over recent evictions in Connecticut, the newspaper said in its electronic edition.

    Fannie Mae plans to sign new leases with renters living in foreclosed properties owned by the company. It also would ensure that its holiday moratorium on new evictions was being followed until the new policy becomes effective in January.

    Fannie Mae could not be immediately reached for comment.

    (Reporting by Jessica Hall; Editing by Valerie Lee)