FHFA Directs Fannie Mae and Freddie Mac to Restrict Lender-Placed Insurance Practices

Categorized | STOP FORECLOSURE FRAUD

FHFA Directs Fannie Mae and Freddie Mac to Restrict Lender-Placed Insurance Practices

FHFA Directs Fannie Mae and Freddie Mac to Restrict Lender-Placed Insurance Practices

For Immediate Release

November 5, 2013

Contact:
Corinne Russell
(202) 649-3032

Stefanie Johnson
(202) 649-3030

FHFA Directs Fannie Mae and Freddie Mac to Restrict
Lender-Placed Insurance Practices

Washington, DC – The Federal Housing Finance Agency (FHFA) announced today that it has directed Fannie Mae and Freddie Mac to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. The announcement follows a Notice that FHFA published in the Federal Register last March regarding its views on these lender-placed insurance practices and accepting public input. The Notice also cited concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks.

FHFA also established a Regulatory Working Group consisting of federal and state regulatory agencies to ensure that all parties with an interest and role in the subject of lender-placed insurance are engaged in the discussions. The views of the Working Group were carefully considered along with the more than 30 replies FHFA received from consumer advocates, state regulators, lender-placed insurance carriers, servicers, managing general agents, individuals, and trade associations in response to the Notice. Today’s action reflects this input.

“FHFA remains concerned about the cost of lender-placed insurance for Fannie Mae, Freddie Mac, and consumers,” said FHFA Acting Director Edward J. DeMarco. “One of our primary responsibilities as conservator of Fannie Mae and Freddie Mac is to preserve and conserve their assets on behalf of taxpayers. This directive is intended to reduce their costs as we consider additional measures.”

Fannie Mae and Freddie Mac will provide aligned guidance to sellers and servicers to prohibit these practices, including implementation schedules.

###
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.5 trillion in funding for the U.S. mortgage markets and financial institutions

source: http://www.fhfa.gov/webfiles/25759/LPI_news_release_110513.pdf

© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Comments

comments

This post was written by:

- who has written 8610 posts on FORECLOSURE FRAUD | by DinSFLA.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

Contact the author

One Response to “FHFA Directs Fannie Mae and Freddie Mac to Restrict Lender-Placed Insurance Practices”

  1. Sarah says:

    Today is November 5, 2013. This racket has been going on for years.

Trackbacks/Pingbacks


Leave a Reply

GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Advertise your business on StopForeclosureFraud.com
Kenneth Eric Trent, www.ForeclosureDestroyer.com

Archives