Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

  Housing Problem Solvers Company


1201 West Peachtree Street, Ste. 2300,

 Atlanta, GA,30309

Housing Problem Solvers


Fannie Mae, Freddie Mac to go after more strategic defaulters

Posted on October 15, 2013 at 10:44 PM
The Federal Housing Finance Agency is pushing Fannie and Freddie to chase down borrowers who can make home loan payments but choose not to.

Anyone thinking of skating on mortgages owned by eitherFannie Mae or Freddie Mac may want to think again. As a result of new government reports, the two companies say they are going to do a better job of going after so-called strategic defaulters.Fannie and Freddie can pursue judgments against borrowers who walk away from their loans even though they have the ability to make their payments. That's called a strategic default, and many borrowers are taking that step — typically throwing in the towel because their homes are no longer worth as much as they owe.But when their homes are sold at foreclosure and the proceeds are not enough to cover their outstanding loan balances, it creates a deficiency for which many defaulters either don't realize they are liable or don't care.To date, the two government-sponsored enterprises, which are now highly profitable after five years of running in the red, haven't done a particularly good job at pursuing deficiency judgments, according to scathing reports from the Office of the Inspector General at the Federal Housing Finance Agency.But the FHFA says it is going to make the GSEs clean up their acts. And that should serve as fair warning to those who can pay but fail to do so.As the inspector general's office says time and again in the reports, chasing down strategic defaulters can not only cut the enterprises' losses on bad loans but can also "serve as a deterrent to those who would chose to strategically default on their mortgage obligations."Going after strategic defaulters is big money. According to the report by the inspector general's office criticizing Freddie Mac's lax practices, the company has left billions on the table.The report found that Freddie Mac, which has received some $71 billion in taxpayer assistance since it was taken into conservatorship by the FHFA in September 2008, did not refer nearly 58,000 foreclosures with estimated deficiencies of some $4.6 billion for collection by its vendors.Of course, only a percentage of that amount might have been recoverable because some borrowers are simply tapped out. But because the bad loans weren't even considered for recovery, Freddie Mac "eliminated any possibility" for collecting what is owed, the report said.Now extrapolate that to Freddie Mac's entire holdings and you can see we're talking some really big money here. As of December, the big secondary mortgage market company had nearly 50,000 foreclosures still on its books, carrying a value of some $4.3 billion. And as of March 31, it held 364,000 mortgages that were 60 days or more delinquent and were, therefore, likely foreclosure candidates.Fannie Mae's portfolio of troubled assets is much larger. At the end of last year, it owned more than 105,000 foreclosed properties valued at $9.5 billion and carried a "substantial" shadow inventory of 576,000 seriously delinquent mortgages that were 90 days late or more and likely to end up in foreclosure.It does a better job than the smaller Freddie Mac, according to the inspector general's office. But in a separate report, Fannie Mae earned a slap on the wrist for not taking any action on nearly 30,000 accounts because statutes of limitation had expired or were about to. For the same reason, the report says, it failed to pursue deficiencies of some 15,000 accounts that already had been reviewed for collection by its vendors.Several factors influence the decision to pursue deficiency recoveries. But most important, state laws dictate timelines for filing claims. Some states do not allow deficiency judgments at all, but they are fair game in more than 30 states and the District of Columbia. But 10 have short windows — only 30 to 180 days in which collections are allowed.But not going after defaulters where it is permissible to do so not only reduces the chances of recovering potentially billions, the reports point out, it "incentivizes" other borrowers to walk away from mortgages they can afford to pay.The new inspector general reports are a follow-up to one issued a year ago that called the FHFA, the agency that oversees Fannie and Freddie, on the carpet for failing to provide enough guidance about effectively pursuing and collecting deficiency judgments wherever and whenever possible.In September, in response to a draft of these latest reports, the agency set down requirements for both enterprises to maintain formal policies and procedures for managing their deficiency collection processes, establish a set of controls to monitor their collection vendors and comply with state laws in an effort to preserve their ability to pursue collections.And by the first of the year, the FHFA said it will begin to more closely monitor the effectiveness of Fannie Mae and Freddie Mac's deficiency judgment processes. That's government-speak for "We'll be watching you from now on, so you'd better get your collection house in order."

Categories: Bad Credit, Bad Credit Housing Locator Service, Housing Problems, Identity Theft, Mortgage Problems

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply Social housing Australia
5:18 AM on November 11, 2013 
The Federal Housing Finance Agency is doing good work Thanks to blogger for giving such good information. I must forward this information.

Reply curry shoes
5:47 PM on January 8, 2022 
My husband and i felt very lucky that Michael managed to conclude his web research out of the ideas he acquired out of your web pages. It's not at all simplistic to simply possibly be offering points which usually many others may have been selling. We really consider we've got the website owner to thank for this. The most important illustrations you have made, the straightforward blog navigation, the relationships you can help to engender - it is most incredible, and it's assisting our son in addition to us imagine that the article is cool, which is extremely important. Thank you for the whole lot!
curry shoes
Reply jordan shoes
5:47 PM on January 8, 2022 
Needed to write you this very little remark to be able to give many thanks yet again for the incredible views you've shared in this article. It's quite unbelievably open-handed with people like you to deliver openly what exactly many individuals might have made available for an e book to end up making some bucks for themselves, principally since you could possibly have done it if you ever wanted. These techniques additionally acted as a great way to fully grasp that some people have similar dreams just like my personal own to learn great deal more concerning this matter. I'm certain there are several more pleasant occasions in the future for those who scan your blog.
jordan shoes
Reply russell westbrook shoes
11:08 PM on January 9, 2022 
Thanks so much for giving everyone an extraordinarily marvellous opportunity to discover important secrets from this site. It is often so pleasing and also full of fun for me and my office co-workers to visit your site more than thrice every week to read the new guides you have got. And lastly, I am always contented considering the staggering things you serve. Some 3 ideas on this page are basically the most effective I have had.
russell westbrook shoes
Reply off white outlet
11:09 PM on January 9, 2022 
I and also my buddies appeared to be checking the great secrets and techniques found on the blog then the sudden I had a horrible suspicion I never expressed respect to the website owner for those secrets. My young boys became certainly happy to read through them and have in actuality been taking pleasure in them. Thank you for genuinely really accommodating and for making a decision on this kind of marvelous things millions of individuals are really needing to know about. My very own sincere regret for not expressing gratitude to earlier.
off white outlet
Reply paul george shoes
11:10 PM on January 9, 2022 
I would like to voice my admiration for your kindness supporting persons who should have assistance with in this study. Your personal commitment to getting the solution all through appeared to be particularly functional and have continuously made others just like me to realize their ambitions. Your entire important help and advice means much a person like me and a whole lot more to my colleagues. Best wishes; from each one of us.
paul george shoes
Reply kd 12
11:11 PM on January 9, 2022 
I wanted to draft you one very little word to finally give many thanks as before for those marvelous opinions you have discussed here. It's simply incredibly generous of you to deliver openly precisely what a number of people would have marketed as an e book to end up making some dough for their own end, chiefly now that you could have done it if you decided. Those tricks also worked like the fantastic way to be aware that many people have the same fervor just like my own to know a great deal more in respect of this matter. I believe there are numerous more pleasurable periods up front for people who looked at your blog post.
kd 12
Reply kevin durant shoes
4:12 AM on January 10, 2022 
I wanted to send you this little bit of word just to give thanks the moment again for all the pretty thoughts you have provided at this time. It is quite tremendously generous of people like you to provide without restraint just what numerous people could have sold for an e book to help make some cash for themselves, principally now that you might have tried it if you ever considered necessary. Those secrets additionally served like a good way to realize that other people online have the same keenness the same as my personal own to learn a great deal more with reference to this condition. I believe there are some more enjoyable opportunities ahead for people who look into your site.
kevin durant shoes
Reply moncler
4:16 AM on January 10, 2022 
I intended to draft you one very little observation to be able to give thanks again for all the striking suggestions you've shared on this site. This is so wonderfully generous with people like you to supply unhampered what many people could possibly have offered as an e book to help with making some cash for their own end, mostly considering that you might well have tried it in the event you desired. The pointers likewise worked to provide a fantastic way to be aware that other individuals have the same eagerness just like mine to see more around this problem. I believe there are millions of more pleasant instances up front for many who view your site.
Reply off white nike
6:00 AM on January 11, 2022 
I enjoy you because of your whole efforts on this web page. My daughter really loves participating in research and it is easy to understand why. My partner and i hear all regarding the compelling tactic you make good techniques via this website and improve participation from people on that area and our own child is now discovering a whole lot. Enjoy the remaining portion of the new year. You're the one carrying out a terrific job.
off white nike
Reply kyrie irving shoes
4:01 PM on January 12, 2022 
I precisely needed to appreciate you once again. I'm not certain the things that I would've sorted out without those ways revealed by you about that subject matter. It had been a real troublesome scenario in my view, but seeing the very specialised form you managed the issue made me to jump over gladness. Now i am grateful for the information and in addition have high hopes you comprehend what a powerful job you happen to be getting into teaching many others through the use of your blog. I know that you haven't encountered any of us.
kyrie irving shoes
Reply supreme hoodie
4:01 PM on January 12, 2022 
I want to voice my love for your kindness giving support to all those that really need assistance with this one study. Your very own dedication to passing the message all around ended up being certainly significant and have continuously permitted some individuals like me to attain their targets. Your new warm and friendly information denotes a lot a person like me and far more to my mates. Thanks a lot; from each one of us.
supreme hoodie
Reply supreme hoodie
4:03 PM on January 12, 2022 
I simply wanted to construct a small message to be able to thank you for these magnificent tactics you are giving out at this website. My prolonged internet investigation has finally been honored with sensible content to go over with my two friends. I would believe that many of us readers are unquestionably lucky to be in a good community with very many outstanding people with insightful methods. I feel really privileged to have discovered the webpages and look forward to many more exciting minutes reading here. Thank you once again for everything.
supreme hoodie
Reply giannis antetokounmpo shoes
4:05 PM on January 12, 2022 
I just wanted to jot down a simple message in order to thank you for some of the marvelous pointers you are showing here. My particularly long internet research has at the end been recognized with wonderful knowledge to go over with my best friends. I 'd assert that we readers actually are undoubtedly endowed to live in a great website with so many awesome individuals with very beneficial opinions. I feel somewhat blessed to have come across your entire website and look forward to some more awesome minutes reading here. Thanks once more for everything.
giannis antetokounmpo shoes
Reply hermes belt
10:39 PM on January 13, 2022 
I really wanted to type a brief message so as to thank you for all the lovely items you are sharing on this website. My considerable internet investigation has at the end of the day been rewarded with extremely good points to write about with my friends. I 'd repeat that most of us site visitors actually are definitely endowed to live in a great network with so many marvellous individuals with useful methods. I feel truly lucky to have discovered your entire webpage and look forward to some more amazing minutes reading here. Thanks a lot again for a lot of things.
hermes belt
Reply supreme shirt
10:40 PM on January 13, 2022 
I not to mention my guys were actually taking note of the good tricks found on your website and so instantly came up with a horrible feeling I never thanked the blog owner for those strategies. All the men came as a result very interested to read all of them and now have in fact been taking advantage of those things. Many thanks for genuinely quite kind and then for deciding on variety of awesome subject matter most people are really eager to know about. My very own honest apologies for not expressing appreciation to you earlier.
supreme shirt
Reply jordan shoes
10:41 PM on January 13, 2022 
I wish to show my appreciation for your kind-heartedness in support of those people who absolutely need help with that issue. Your real commitment to passing the solution all through was extremely informative and have all the time enabled regular people much like me to achieve their endeavors. Your entire important report entails a great deal to me and still more to my fellow workers. Best wishes; from all of us.
jordan shoes
Reply paul george
10:42 PM on January 13, 2022 
My wife and i ended up being delighted when Chris could finish off his survey because of the ideas he made from your very own web page. It is now and again perplexing to simply be making a gift of guidelines which often most people might have been trying to sell. And we all do know we now have the writer to give thanks to for that. The illustrations you've made, the simple web site menu, the friendships your site aid to create - it is most powerful, and it's making our son in addition to us reason why the subject matter is thrilling, which is really essential. Thanks for everything!
paul george
Reply supreme new york
10:43 PM on January 13, 2022 
I enjoy you because of your whole effort on this blog. Debby really loves doing research and it is easy to see why. We learn all regarding the powerful mode you provide insightful solutions through your blog and as well foster response from other ones about this theme so our favorite princess is always understanding a lot of things. Enjoy the remaining portion of the year. You're the one conducting a stunning job.
supreme new york
Reply yeezy shoes
3:35 AM on January 14, 2022 
I not to mention my pals were found to be looking through the excellent tips and tricks from your website then quickly developed a terrible feeling I never thanked the web blog owner for them. All the boys happened to be consequently joyful to read through all of them and have in effect clearly been taking pleasure in these things. Thanks for truly being quite helpful and also for pick out such marvelous useful guides millions of individuals are really eager to be informed on. My personal honest regret for not saying thanks to sooner.
yeezy shoes