Report Urges FHFA Vigilance Over Mortgage Servicing

Law360, New York (March 7, 2012, 6:02 PM EST) -- The federal agency charged with overseeing Fannie Mae and Freddie Mac relies too heavily on the companies' assessment of risks posed by independent mortgage servicers who contract with them and should strengthen its own regulatory efforts, a Wednesday report said.

Although the Federal Housing Finance Agency has stepped up its oversight of mortgage servicing companies since August 2010, the agency "has not issued sufficient regulations or guidance" because it believes that Fannie and Freddie have sufficient knowledge and expertise to monitor risks presented by independent mortgage...
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