Industry NewsMortgage

Fannie, Freddie get ‘robo signing’ orders

Loan servicers must double-check foreclosure, REO filings
Published on Oct 14, 2010

Fannie Mae and Freddie Mac's federal regulator says loan servicers working for the companies must review affidavits filed in foreclosure proceedings before proceeding to judgment or selling foreclosed properties.Guidance issued by the Federal Housing Finance Agency on Thursday directs Fannie and Freddie to require that all loan servicers working for the companies take steps similar to those already implemented by lenders implicated in the "robo signing" scandal.Mortgage servicers working for Fannie and Freddie must not only review their foreclosure processes and remediate any problems they find, but recheck affidavits filed in ongoing foreclosure actions and on "real estate owned" (also known as bank-owned or REO) properties in Fannie's and Freddie's inventories before those properties can be sold.The four-point policy framework "envisions an orderly and expeditious resolution of foreclosure process issues," providing greater certainty to homeowners, lende...

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