Home Foreclosures - Freddie Mac (OTC:FMCC) COO Issues Statement On Foreclosure Processing Issues

In light of certain procedural irregularities in the documentation process of foreclosures being highlighted in the media recently, Bruce Witherell, the Chief Operating Officer for Freddie Mac released the following statement regarding the documentation process during foreclosures: “Freddie Mac is deeply concerned about recent reports that there may be affidavits that were improperly executed in connection with foreclosures. The alleged practices in these reports are clearly not in compliance with Freddie Mac’s guidelines and directives to its servicers. We are providing instructions to our servicers later today that are intended to ensure that their foreclosure processes are in compliance with state law and Freddie Mac’s servicing requirements. It’s essential that the industry work together to protect borrowers’ rights and ensure the integrity of the foreclosure process.”

Several cases have been reported recently, where the procedure adopted by some bank and lenders regarding the signing of affidavits, which are required as a part of the foreclosure process, were incorrect in terms of the legal requirements regarding the signing of affidavits. Whilst most lenders and banks have begun to review and amend their internal procedures regarding the signing of these affidavits, it is expected that these instructions being provided by Freddie Mac to their servicers will help to ensure that these affidavits will be signed in the correct manner, and that the rights of the borrower will be protected during the foreclosure process.