New York | Thursday, April 28, 2011 5: 29 pm EDT
New York (Reuters)--Fannie Mae and Freddie Mac, designed to smash home financing system blockage palaces, take a new approach in Al-targheeb wa'l-tarheeb housing loans companies service the federal housing financial regulator said Thursday.
The federal housing finance agency, Fannie and Freddie to harmonize guidelines adopted by the so-called mortgage servicing companies often blame vombling efforts to keep borrowers in their homes, as well as foreclosures.
Many Servicers are under investigation by prosecutors for their role in mortgage failures and foreclosures.
Eduard dimarko, acting Director of fhva, in a direction "should earlier engagement servicer to determine the best possible solutions for homeowners."
He fhva harmonization of service delivery approach that also helps reduce cost to taxpayers who have billions of dollars in losses for companies as stand-alone housing slump,. Complained about Fannie Mae and Freddie Mac that delay or other service problems raised costs.
Among common guidelines, servicers will receive incentives to make modifications before the delinquent borrower, but the penalties for failure to achieve certain goals, fhva said. For example, you will receive the servicer that facilitates payments to borrower within four months $ 1,600 delinquency, but only $ 400 if process last more than seven months.
The guidelines also prohibit servicers from seeking foreclosure while a borrower to modify loans.
Changes can help form the basis of the level of service delivery at the national level regulators and lawmakers sought, and given access. New guidelines will be issued for servicers in the third and fourth quarter, "said fhva.
Guidelines are sure to be a monumental task for Fannie, Freddie, which draws cash from investors to around 90 per cent of total new loans and private or more than 5 trillion dollars in mortgages. Fannie Mae and Freddie Mac working with servicers more than 1,400 and 2,000, respectively, according to company spokesman.
Freddie Mac pointed out that there is "operational differences in implementation.
Major banks, including Bank of America Corp & Morgan Chase Co and Citigroup Inc and Wales Fargo & Co among top mortgage servicers.
(Reporting by Yoon; editing by grebler Dan)
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