FHFA-OIG: GSE mortgage servicing needs oversight
Efforts at Fannie and Freddie to align practices going unsupervised
The Federal Housing Finance Agency Office of Inspector General released its latest report entitled “FHFA’s Oversight of the Servicing Alignment Initiative.”
The SAI was established in April 2011 as way to address widespread deficiencies in servicer management of deficiencies in servicer management of delinquent mortgages, the FHFA-OIG said.
In addition, the initiatives include a series of FHFA directives setting forth contractual requirements that the Enterprises must incorporate into their servicing guidelines.
However, there is currently no system in place to monitor if the initiatives are being upheld.
“We believe it is critical that FHFA address this deficiency in its oversight process. Doing so would enable the Agency to identify and understand SAI compliance deficiencies and trends, ensure that corrective action is undertaken, assess the effectiveness of SAI, and make adjustments to the program as needed,” the FHFA-OIG stated.