Mortgage firm cracks down on walkaway homeowners

WASHINGTON - Government-sponsored mortgage purchaser Fannie Mae says it is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for seven years.

Troubled borrowers who do not try in good faith to work out a deal but have the capacity to pay are targeted by the policy announced Wednesday.

Those who make a good-faith effort to resolve their situation with their mortgage services, and those who have extenuating circumstances, will be eligible for such loans in a shorter time, the company said.