The action by Fannie Mae comes in response to pressure from tenant advocates. The suspension of evictions only applies to tenants that are current on their rent. How one will know if a tenant is current when the borrower has not paid and might have skipped is a bit unclear.

In some ways the policy makes sense. Keep the property occupied on a normal month to month rental agreement or lease while the property goes through the process. Less chance of damage. More likely the property will retain its value. Some risk of being a landlord but that can largely be managed by licensed property managers hired by Fannie Mae.

Here is the article from the WSJ.com site:

Fannie Mae to End Tenant Evictions in Foreclosures