The Federal Housing Finance Agency expects servicers working for Fannie Mae and Freddie Mac to review affidavits before any foreclosure action, eviction, or REO sale.
These requirements are spelled out in a new four-point policy framework the GSE regulator issued Wednesday afternoon. The new policy also includes guidance for remediation of foreclosure deficiencies.
"This framework envisions an orderly and expeditious resolution of foreclosure process issues that will provide greater certainty to homeowners, lenders, investors and communities alike," FHFA acting director Edward DeMarco said.
The FHFA framework also directs servicers to proceed with foreclosures when their reviews find no problems. "Delays in foreclosures add cost and other burdens for communities, investors and taxpayers," the FHFA directive says.
Fannie executive vice president Terry Edwards said the FHFA announcement reinforces the directive Fannie issued last week. "We continue to expect prompt execution of our directive," Edwards said.
He noted that Fannie servicers have halted foreclosures, evictions and REO sale closings when necessary to take corrective actions.
