Lenders Balk at Buying Back $11 Billion in Bad Loans from Fannie Mae and Freddie Mac

When a homeowner breaks his or her contract by not making a mortgage payment, the lender often has a simple remedy. It takes back the house and sells it to someone else to reclaim its loan.

But what happens when lenders themselves fall back on their contractual mortgage loan obligations with federal government agencies?

Nothing, it seems, at least at this juncture.