Advanced Search

Volume 2014 - Number 25

June 26, 2014

IG Audit: Fannie, Freddie Overcharged at Least $158M For ‘Force Placed’ Insurance, FHFA Should Sue to Recover

The Federal Housing Finance Agency will “assess the merits of litigation” against Fannie Mae’s and Freddie Mac’s servicers and lender-placed insurance providers to recover premium overpayments by the government-sponsored enterprises following a pointed suggestion to do so by the agency’s official watchdog. A new audit released by the FHFA’s Inspector General found that Fannie and Freddie could have overpaid about $158 million in 2012 alone for lender-placed or “force-placed” insurance policies. The IG said it calculated its $158 million figure as the difference between the amount the GSEs actually paid in premiums – $360 million – and a “reasonable” price for such coverage – $202 million. “Our retrospective analysis suggests...

Subscribers to Inside Mortgage Finance have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?

Subscribe

A weekly "must read" for industry executives. Thoroughly covers regulatory, political, legislative and market issues in the residential mortgage business.

 

Pay-Per-View

You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744

Poll

In 2016, what have you been paying your retail residential loan officers, on average, as a commission?

25 to 50 basis points per loan
51 to 75 bps
76 to 100 bps
101 to 150 bps
More than 150 bps
We’re a call center lender and don’t disclose that data point.

vote to see results
Housing Pulse