Most Freddie Mac servicers are not complying with reporting requirements that seek to catch servicing fraud and regulatory violations, a mandate that falls under the Federal Housing Finance Agencys Servicing Alignment Initiative, according to a new audit. The FHFA Inspector General separately slammed the regulator for failing to thoroughly oversee how the two government-sponsored enterprises monitor their seller/servicers compliance with contractual agreements.
In spite of the influx of new human resource assets, banking regulators have a mixed effectiveness when it comes to compliance with their own Dodd-Frank obligations.
When Fannie Mae and Freddie Mac work with counterparties, they have contractual agreements that loans sold to them comply with federal and state laws governing the origination and servicing of mortgage loans.