Mortgage Giant Fails to Settle Homeowner Complaints

March 25, 2013 Posted by kingcade

A recent report showed that mortgage giant, Freddie Mac, failed to resolve a large portion of borrower’s complaints between October 2011 and November 2012. The report showed that Freddie Mac’s eight largest mortgage servicers resolved more than 25,500 complaints during that time but failed to handle 21 percent of the complaints filed within the allotted 30-day period. Furthermore, the report found that the majority of the complaints that came in and were considered “escalated complaints” were never reported to Freddie Mac. “Escalated complaints” are those that the field agent manning the phone cannot resolve and must be reported to Freddie Mac. Four out of eight of Freddie Mac’s mortgage servicers did not report a single complaint from October 2011 to November 2012. These four lenders included: Bank of America, CitiMortgage, Wells Fargo and Provident.

In addition to complaints not being passed on to Freddie Mac, the watchdog agency also reported that the Federal Housing Finance Agency (FHFA) did not have a proper plan in place for resolving the complaints from borrowers that were reported. The FHFA is responsible for monitoring Freddie Mac and its servicers. As a result, allegations of servicing fraud and improper foreclosures were inadequately handled. Freddie Mac and its servicers are required to observe strict protocol when a borrower files a complaint, according to 2011 guidelines that were issued to protect borrowers from fraudulent lender practices.

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