Frankly, we don’t know exactly what to make of this brief article which follows below. But, if something smells — hold your nose. In order to protect taxpayers, Fannie runs a tight legal ship regarding foreclosures.
To us it sounds like servicers who wish to foreclose on a Fannie mortgage must use the Fannie list because attorneys on the list are up to speed, in on the game, aware of the fraud, and know where and when to ignore it. Can we prove this? Hardly. However, if it smells – hold your nose.
This article is new reporting from DSNews. See Carrie Bay’s complete article here.
To the article.
“Fannie Mae issued a servicing guide update Tuesday, which adds 14 additional states to the GSE’s list of jurisdictions in which its servicers must use one of the legal firms approved by Fannie Mae to handle all foreclosure and bankruptcy matters, as well as post-foreclosure legal proceedings and activities.
“As specified by the GSE, the firms in its retained attorney network must handle all issues relating to conventional or government mortgages held in its portfolio, or that are part of a mortgage-backed securities (MBS) pool with the special servicing option, or a shared-risk MBS pool for which Fannie Mae markets the acquired property. “
“The network initially included 31 jurisdictions (30 states and Puerto Rico) with the expectation that additional jurisdictions would be added over time, Fannie Mae explained in the newly issued servicing guide. The GSE has added the following 14 jurisdictions to the mandatory retained attorney network: “
“Servicers who choose not to use the Fannie Mae retained attorney for Puerto Rico will be required to reimburse the GSE for any losses that may occur because the attorney they selected failed to meet their responsibilities.”
Ken here. We took a big section out of the piece, but, if you’re technically inclined, or just curious, read the full article. Posted only for information purposes.Print This Post