Freddie Mac's Docs Guidelines Remain Unchanged By Foreclosure Crisis
Washington-Should mortgage documents and forms be updated to reflect lessons learned from an ongoing market crisis? A negative answer may not convince everyone, it, however, is the case with at least one government-sponsored enterprise even though most loans operated in the marketplace today are GSE loans.
Despite the economic environment seeing drastic changes in the past few months, including the recent foreclosure crisis and the emergence of new government programs such as the Troubled Asset Relief Program, Public-Private Investment Program, or the Making Homes Affordable Program, Freddie Mac's document custody guidelines have remained unchanged.
According to its Document Custody Procedure Handbook, Freddie's guidelines for document custodians has not changed since September of last year, a month before the Emergency Economic Stabilization Act of 2008 was signed into law. The GSE does not appear to have introduced any new forms or documents, as one would expect to see in the light of new government programs and compliance needs. A Freddie spokesperson told MSN the overall mortgage climate changes apart, the rules for document custody wouldn't need to change unless new laws have been implemented that require guideline amendments.
"The rules for document custody wouldn't change unless a state makes any specific changes in the law," said Brad German, a spokesman for Freddie Mac, adding that he has not heard of any plans to update the guidelines in the immediate future.
"It's been a busy past few months," he said, without elaborating on what he meant, or explaining if that implied related work in progress.
Separately, shortly after Freddie Mac's acting chief financial officer David Kellermann was found dead in his home of an apparent suicide, former chief executive David Moffett, has temporarily returned as a consultant to interim CEO John Koskinen.
He will advise and assist Mr. Koskinen with directing the finance division as the company seeks a permanent CFO.