FHFA’s Oversight of the Enterprises’ Efforts to Recover Losses from Foreclosure Sales
Why FHFA-OIG Did This Audit
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises) support the secondary mortgage
market by buying residential mortgages and securitizing most of them. Typically, when borrowers default on these mortgages and efforts to cure the defaults fail or do not materialize, the
properties are foreclosed upon and eventually sold. The purchase price, though, may not be enough to pay off the entire outstanding mortgage balance on the property and the resulting
shortfall is known as a deficiency. The Enterprise that owned or guaranteed the particular mortgage then absorbs the loss.
In 2008, the Enterprises entered conservatorships overseen by the Federal Housing Finance Agency (FHFA or Agency) as a result of their deteriorating financial conditions. Simultaneously, the U.S. Department of the Treasury (Treasury) began investing taxpayer funds—more than $187 billion to date—in the Enterprises to cover their losses.
If the Enterprises can recover mortgage deficiencies, then they can mitigate some of their losses. For example, with respect to borrowers who may currently or in the future possess the ability to repay—such as, but not limited to, owners of investment properties or vacation homes who have defaulted for strategic reasons—pursuing deficiency collections and judgments may provide an added source of revenue for the Enterprises. In addition, pursuit against such borrowers may deter others who are considering default despite being financially able to make their mortgage payments. However, during 2011, the Enterprises recovered only a small fraction of the deficiencies they pursued—approximately $4.7 million collected out of $2.1 billion pursued.
FHFA’s Office of Inspector General (FHFA-OIG) undertook this audit to assess FHFA’s oversight of the Enterprises’ deficiency management. In a future audit, FHFA-OIG plans to assess the Enterprises’ different practices and their relative effectiveness in recovering deficiencies.
Full report below…
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4closureFraud.org
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FHFA’s Oversight of the Enterprises’ Efforts to Recover Losses from Foreclosure Sales
But thats just what there doing isnt it,taking these fraudulent products that were bunk from the get go and resecuritizing or whatever it is they do,some sort of hoodoo voodoo and out of there hat pops a nice newish,backed by the full power of the very folks[the government,well us taxpayers]no recourse type loan product that no matter how fraud filled this sucker is you will get NO LOVE FROM THE COURTS.Thats right here in the territory formerly known as THE UNITED STATES OF AMERICA we don f..k around.When it comes to kicking these deadbeats around we will show you fools whats what,who would of thunk it,a way to sort out the rif raff in these sneaky underhanded ways via banks and credit reporting agencies and such,why bother with cops and the military we plan on starving em to death real slowly.
More bluster and threats from the FHFA. Why not get “the money” from the Banks? Seems logical.
I thought all the banksters wanted nonjudicial foreclosure, so that their fraud wouldn’t come to light? Yet now, they want to be able to nonjudicically foreclose AND have a deficiency judgment. Nonjudicial foreclosure does not work that way. Sorry, crooks, you can’t have your cake AND eat it too!