WASHINGTON (Reuters) - The regulator for Fannie Mae and Freddie Mac on Tuesday backed mortgage servicers going ahead with foreclosure proceedings even as they negotiate possible loan modifications aimed at keeping struggling borrowers in their homes.
Paperwork issues that arise during the complicated foreclosure process are the responsibility of the mortgage servicers to sort out, said Edward DeMarco, acting director of the Federal Housing Finance Agency.
"The pressure from high volumes of foreclosures working through the system has surfaced fault lines in the foreclosure process that remain the responsibility of management at these companies to identify and fix," DeMarco said in testimony prepared for delivery on Wednesday to the Senate Banking Committee.
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WASHINGTON (Reuters) - The regulator for Fannie Mae and Freddie Mac on Tuesday backed mortgage servicers going ahead with foreclosure proceedings even as they negotiate possible loan modifications aimed at keeping struggling borrowers in their homes.
Paperwork issues that arise during the complicated foreclosure process are the responsibility of the mortgage servicers to sort out, said Edward DeMarco, acting director of the Federal Housing Finance Agency.
"The pressure from high volumes of foreclosures working through the system has surfaced fault lines in the foreclosure process that remain the responsibility of management at these companies to identify and fix," DeMarco said in testimony prepared for delivery on Wednesday to the Senate Banking Committee.
Copyright 2010 Reuters News Service. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.