Is Fannie Mae Setting a Precedent?

CNN reported this story on Friday. I’m conflicted. It’s sweet but rewarding someone for inflicting harm on themselves? Not as though Fannie Mae can afford charity these days.

Addie Polk, 90, of Akron, Ohio, became a symbol of the nation’s home mortgage crisis when she was hospitalized after shooting herself at least twice in the upper body Wednesday afternoon.

On Friday, Fannie Mae spokesman Brian Faith said the mortgage association had decided to halt action against Polk and sign the property “outright” to her.

“We’re going to forgive whatever outstanding balance she had on the loan and give her the house,” Faith said. “Given the circumstances, we think it’s appropriate.”

Residents of Akron have rallied behind Polk, who is being treated at Akron General Medical Center. She was listed in critical condition Friday afternoon, according to Akron City Council President Marco Sommerville.

4 Comments on “Is Fannie Mae Setting a Precedent?

  1. I am curious about the specifics of the story. They lived in the house for nearly 40 years, why was she refinancing and with a 30 yr? Medical bills? Was a reverse mortgage a better option? How did the conversations go with the lender/mortgage broker? Was she fully informed? Does she suffer from dementia and didn’t understand what was going on?

    Where were the kids or grandkids during this process?

  2. as well as, are her actions justified morally and ethically? let’s actually apply the scenario to everyone can’t make payments (or the plethora who can and choose not too, i.e. all the investors in florida who chose to walk away. Since Fannie is going to go bye-bye soon or be seriously re-structured under “strict OR loose regulatory changes”, if everyone shoots themselves they get a free home? let’s reward selfishness. good job.

  3. Where does a 90 year old get the strength and resolve to to shoot herself not once but twice and in the upper body? That seems highly suspect to me.

  4. Excellent point. She was NOT informed on her own or BY THEM about the option of reverse mortage, umm hmm sounds like something going on here, scam? The lender knows about that option, the victim may not and thus is why they decided as they did,
    “to forgive loan after this came to light.

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