Mortgage Loan Compliance | Compliance For Fannie And Freddie

Compliance For Fannie And Freddie

The Attorney General of Connecticut, Richard Blumenthal,  is asking Fannie Mae and Freddie Mac to turn over documents regarding the foreclosure and default servicing practices of the GSEs in the state.

The deadline of compliance by June 19 and none of the parties involved are commenting on the requests for information.

Assistant Attorney General Jon Blake, who is familiar with the case, only acknowledged and validated the inquiry, but could not say if the firms were expected to meet the deadline.

In the letters, AG Blumenthal notes that his office is receiving complaints that “consumers are not receiving proper foreclosure notices and are being charged excessive fees in connection with foreclosure actions.”

Blumenthal said “these complaints may reveal a system of favoritism, where only a few select law firms and state troopers are assigned to deal with actions the GSEs are taking on the borrowers.”

The AG requested by the aforementioned deadline 10 points of data, including disclosure of the law firms employed in the last two years, as well as the criteria for selecting these entities and copies of all contracts with law firms the GSEs work with to manage borrower defaults. The office also wants all fees paid to business identified and itemized before being sent over. The AG also requested disclosure of services provided to lenders he wants to see all complaints Fannie and Freddie recently received concerning foreclosure actions.