Freddie Mac Disappoints Homeowners Yet Again – Guest Post
Over a span of five years, people who owned their own homes in the United States have long been complaining specifically about foreclosure abuse in the mortgage industry. Since then they have wondered whether the people who have financial stakes for keeping the people housed in their own homes were paying them any sort of attention at all. Unfortunately, a report which was released by an official representative at Federal Housing Finance Agency, have confirmed what home owners have long been suspecting. Nobody cares.
It was reported that many large companies, including banks, have an accumulated mortgage amount for approximately 10 million homes or more at the present. That means 10 million mortgages managed on behalf of Freddie Mac and they have mostly failed to address home owners’ complaints in the right manner, despite it being a requirement.
The complaints that were missed ranged from mild to serious levels and this was ultimately not made known to the mortgage giant. Furthermore, most of these complaints was concerned with regards to allegations of serious misconduct that involves the abuse of fee charges, mortgage payments that were misapplied and poor levels of customer service. There have also been cases where an accidental foreclosure was placed upon homes as a direct error of management.
There were many reasons for home owners to be angry at Freddie Mac and many analysts have expressed concern over how such a large and reputable organization could not have handled home owner complaints in a fashion that was much more complacent to general guidelines and standards. Nevertheless, the FHFA also came under fire as it was supposed to be the overseer for matters such as this and they too failed to pinpoint the fact that Freddie Mac improperly handles its customer’s complaints.
There were many instances of different parties receiving misguided information. Even the largest bank providers such as Wells Fargo, Citigroup, The Bank of America and Provident had found no escalated cases against Freddie Mac. This was a serious blunder and even for the FHFA who had relied primarily on Fannie Mae reports that were incomplete to begin with.
The fact is that despite being government controlled, Freddie Mac and the FHFA who acts as its federal overseer, have failed to ensure that borrowers were treated fairly and equally. Only leaving it to the moment when disgruntled home owners decided to demand a huge compensation for its abuse and the organization deciding to fold over and make massive settlements.
Obviously this is not only a major waste of money but it also serves as a bailout plan for the top cats at Freddie Mac. In the event a problem occurs, they just pay the right amount of money to make it go away. The problem persists despite the fact that the FHFA were specially appointed in 2008 with major administrative reign and regulatory powers over Freddie Mac.
If the problem is not rooted out at the source, how many more homeowners will have to suffer?