More On The Role of Servicing Agents

November 25, 2011

Foreclosures, Mortgages

Okay, I have made a couple of comments in this blog with regard to the actions of servicing agents and their role in the housing crisis.

And now I have more to rail about.

As part of the realignment of Fannie and Freddie and their foreclosure policies, the FHFA has directed the two thieving behemoths with deconstructing their attorney networks that led to the robo signing crisis.

I did not realize this until today, but it would seem that it makes sense.  Fannie and Freddie are as responsible as any large bank for the events that transpired in the robo signing scandal.

You see, Fannie and Freddie own more than 90% of the mortgages in the United States.  Well, it does not own them, but it does maintain the servicing agreements.

Other than interest, this is the biggest revenue stream that is a part of the entire housing industry.

As part of this arrangement, and to actually facilitate the servicing of the loans, Fannie / Freddie both subcontract this service to companies like HomEQ – the Snydely Whiplash of home loan servicing.

Once a servicing agent has filed a default and is moving toward foreclosure, they may need to turn things over to a subcontracted attorney who is a part of the Fannie / Freddie network.

This latter network is formed for those states whose foreclosure proceedings are judicial.  It was these attorneys, in this network that was mostly responsible for the robo signing scandal.

At least, they contributed to a large degree.

Strangely, Fannie and Freddie and their attorney network are not a part of the law suits that have been filed by the 50 Attorneys General  against the 14 largest lenders in the land. But Fannie and Freddie ARE the largest lenders.

I will leave it to you to determine why they are not being held accountable.

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island real estate appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Fannie, Freddie to phase out foreclosure attorney networks

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