Friday, December 7, 2012

Freddie Mac's Buyback Strategy & Fraud Rising

Freddie Mac says they are going to be ramping up their re-purchase demands going back to 2004-2005, that's before the housing crisis.

The GSE informed large servicers that they may require them to buy back defaulted loans originated in years prior than what they originally had said as 2006 forward.

This was unexpected, but Freddie has always had the authority to review files when loans stop performing. Doesn't matter when they were originated.

They, the GSE, say that how and why the files are reviewed is adjusted occasionally to make sure they have the the data needed to insure QC and reduce taxpayer exposure to any risk.

Of course, this makes bankers concerned. A quote from one : "That's the reason the mortgage business gets harder to love, because you don't know whether or not you're done with it." Seems to me if it's done right from the start, you'd never have to look back at it and see if the love is still there.

And, on the 2nd note of my title ~ go figure....Mortgage fraud is already on the rise and Short-Sale fraud is expected to increase!

What with unemployment at this rate and mortgage rates so low, of course the mortgage fraud would be on the rise. Don't work there anymore but have a friend that can say you do? Sure, put on your ap you still are employed. Anything to get today's low rates!

Short-Sale fraud. I can see it, well I sure think I can. As an example: A 'flip' property. We check to see the last sale date, notice it was a SS, see that it went for way under enhancements to property, not taking FHA loans, same agent that had the listing before, brought the buyer and has the new listing?

 I'm thinking there was something a little shady going on.

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