Mortgage giants Fannie Mae and Freddie Mac on Friday said they are taking steps to make sure the companies that service their loans are complying with state law in foreclosures.
Ally Financial and J.P. Morgan Chase, which both Fannie and Freddie use to manage some loans, have admitted to submitting flawed paperwork filed in support of foreclosures around the country--an issue has prompted reviews or formal investigations by attorneys general in at least nine states and federal regulators.
Fannie vice president Terry Edwards said Friday that he's "disturbed" by the reports that the servicers failed to follow proper procedure while Freddie said the company "is deeply concerned" about them.
The companies said they are taking action to "reinforce these contractual obligations, strengthen the regimen for review and due diligence on the part of servicers, and protect the rights of borrowers facing foreclosure," Edwards said.
In a company statement that was not attributed to any individual, Freddie said that "it's essential that the industry work together to protect borrowers' rights and ensure the integrity of the foreclosure process."
Fannie and Freddie, which together own or guarantee more than half of the $11 trillion mortgage market, have not been been forthcoming with information about the extent to which the problems at Ally Financial and J.P. Morgan affect them and they didn't offer any more insight Friday.
The Federal Housing Finance Agency, which regulates Fannie and Freddie and 12 federal home loan banks, said it has directed the firms "to work collectively to develop and implement a consistent approach to address any problems." The U.S. government owns almost 80 percent of Fannie and Freddie.
"Our goal is to assure the integrity of the foreclosure process and to see that any corrections in processes be tailored to the problem, protecting the rights of borrowers and investors without causing any undue disruption to the mortgage markets," the FHFA said in a statement.
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Mortgage giants Fannie Mae and Freddie Mac on Friday said they are taking steps to make sure the companies that service their loans are complying with state law in foreclosures.
Ally Financial and J.P. Morgan Chase, which both Fannie and Freddie use to manage some loans, have admitted to submitting flawed paperwork filed in support of foreclosures around the country--an issue has prompted reviews or formal investigations by attorneys general in at least nine states and federal regulators.
Fannie vice president Terry Edwards said Friday that he's "disturbed" by the reports that the servicers failed to follow proper procedure while Freddie said the company "is deeply concerned" about them.
The companies said they are taking action to "reinforce these contractual obligations, strengthen the regimen for review and due diligence on the part of servicers, and protect the rights of borrowers facing foreclosure," Edwards said.
In a company statement that was not attributed to any individual, Freddie said that "it's essential that the industry work together to protect borrowers' rights and ensure the integrity of the foreclosure process."
Fannie and Freddie, which together own or guarantee more than half of the $11 trillion mortgage market, have not been been forthcoming with information about the extent to which the problems at Ally Financial and J.P. Morgan affect them and they didn't offer any more insight Friday.
The Federal Housing Finance Agency, which regulates Fannie and Freddie and 12 federal home loan banks, said it has directed the firms "to work collectively to develop and implement a consistent approach to address any problems." The U.S. government owns almost 80 percent of Fannie and Freddie.
"Our goal is to assure the integrity of the foreclosure process and to see that any corrections in processes be tailored to the problem, protecting the rights of borrowers and investors without causing any undue disruption to the mortgage markets," the FHFA said in a statement.