REALTOR® Magazine-Daily News-Fannie Warns Servicers About Foreclosures

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Daily Real Estate News | September 3, 2010 | Fannie Warns Servicers About Foreclosures
Fannie Mae is cracking down on loan servicers that fail to follow through on foreclosures after it’s clear that the borrower doesn’t qualify for government or lender help.

Fannie has established a foreclosure schedule for homes in each state that reflects the regulations there. Loan servicers that fail to meet these timetables will be fined, Fannie said in a notice to servicers.

Mortgage data aggregator Lender Processing Services reports an estimated 2.02 million home owners were in foreclosure in July nationwide. Another 5.02 million home owners were behind on their mortgages.

Fannie warned in the company’s most recent quarterly report to investors that when servicers fail to deal with delinquent properties promptly they create "a shadow inventory putting downward pressure on both home prices and rents."

Source: Inman News (09/03/2010)