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.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the website, Kingcade & Garcia, P.A.