Fracking Moratorium Could Get Messy For Mortgage Lending in Certain States
April 12, 2012
Fannie Mae and Freddie Mac have generally made exceptions to their own rule regarding title impediments for properties with oil, gas, water or mineral rights, though new environmental disputes over hydraulic fracturing may change that, with confounding implications for a particular regions lenders, said rating service DBRS. While contracts that allow for parties other than the property owner to utilize the land often complicate matters, the profitability of leases for resources like natural gas make those properties more attractive, because the lease would generate income the borrower could apply...