FHFA says Freddie Mac could have done more, recovered more money from banks selling defective mortgages; firm currently reviewing procedures for handling defective loans
Lorena Madrigal
LOS ANGELES
,
September 27, 2011
(Industry Intelligence)
–
Freddie Mac is reassessing its mortgage loan-reviewing procedures after the Federal Housing Finance Agency’s (FHFA) inspector general said the firm could have recovered more money from banks that sold defective loans, Bloomberg reported Sept. 26.
Loan-repurchase agreements have been suspended until the FHFA and Freddie Mac determine a better way to discover more defective loans.
According to the report, the inspector general considered this issue critical to recovering substantial amounts of ill-managed dollars for the mortgage-finance firm and taxpayers.
Auditors from the FHFA and the firm brought up concerns last year over its loan-review process, but told executives and the board that looking into a greater number of loans would increase the money recovered from banks.
The primary source of this article is Bloomberg, New York, New York, on Sept. 26, 2011.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.