Freddie Mac Indifferent to Homeowner Complaints

That is the finding of a report released yesterday by the Inspector General of FHFA, the agency that oversees our nationalized mortgage funders Fannie Mae and Freddie Mac.  Mortgage servicers are paid incentives by Freddie for quick foreclosures, but not for resolving homeowner complaints about mishandled foreclosure prevention and loss mitigation.  Bank of America took an average of 59 days to resolve homeowner complaints, well beyond the 30-day limit imposed by the servicer alignment initiative, and as of January 2014, by CFPB mortgage servicing regulations. 

Comments

[Simon Campbell]

Why am I not surprised? Bank of America’s unethical practices have come to light over the years, along with the questionable actions and inactions of other major lenders, with the result being several foreclosure settlement agreements.

For more reading about this action: BANK OF AMERICA IS HELD OVER THE FIRE – AGAIN (http://www.bankforeclosuressale.com/wp/article-03054249.html)

[Beth Jacobson]

I made a complaint in Nov 2012 to my servicer, Wells Fargo, as to how they were handling the servcing and loan modification of my Freddie Mac owned loan. WF returned all 7 payments of my TPP in violation of HAMP and Freddie Mac guidelines. When I followed up in early January as the status/results of my complaint WF informed me that because I was in litgation with WF (WF filed a foreclosure complaint against me)that WF could not release the results of their investigation into my complaint to me. This is unbelievable, it is more than the fox guarding the henhouse, it is the fox making up the rules for the henhouse. You can not get past the Freddie Mac gatekeepers to make a complaint directly to Freddie Mac about the servicer because Freddie Mac will refer you to the servicer to make the complaint. Is your head spinning yet?