Fannie and Freddie to Align Guidelines for Servicing Delinquent Loans
C.A.R.’s efforts to
address the issues related to the difficulties of the short sale process are
starting to gain traction.
Late last week, the Federal Housing Finance Agency (FHFA) announced it has
directed Fannie Mae and Freddie Mac to establish consistent policies and
processes for the servicing of delinquent loans. The alignment will help
servicers do a better job of resolving delinquencies in a more consistent and
expeditious manner, keep more consumers in their homes whenever possible and
minimize losses to companies and taxpayers.
The directive will
streamline and expedite borrower outreach, align mortgage modification terms
and requirements, and establish a consistent schedule of performance-based
incentive payments and penalties.
The updated guidelines
also prevent servicers from seeking foreclosure at the same time a borrower is
being considered for a loan modification.
FHFA, Fannie Mae, and
Freddie Mac said these directives are in response to concerns about servicer
performance raised throughout the industry and government.
C.A.R. has been meeting
regularly with industry regulators, lenders, and servicers to press for
improvements to the short sale process and will continue to do so until
significant improvements are made.
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