Fannie Mae and Freddie Mac are urging their servicers to review foreclosure processing procedures to ensure they are in compliance with applicable state laws and regulations.
Freddie Mac chief operating officer Bruce Witherell said the GSE will provide instructions to servicers late Friday that are intended to ensure they comply.
Meanwhile, Fannie EVP Terry Edwards said his firm is "disturbed" by reports of servicers failing to follow proper procedures in the administration of foreclosure cases.
As a technical matter, Fannie and Freddie own the underlying servicing rights on their mortgages and have been known to yank processing contracts from certain companies when they fall out of compliance or ignore GSE bulletins and mandates.
Servicers are expected to report to the government sponsored enterprises if any problems are identified.
"Where deficiencies have been identified, the Federal Housing Finance Agency has directed the enterprises to work collectively to develop and implement a consistent approach to address any problems," the GSE regulator said.
