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Foreclosure

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Freddie Mac: Servicers Need to Diversify Foreclosure, Bankruptcy Referrals 

Apr 17, 2008By

(Update 2: adds updated discussion of effect on outsourcers, clarifies indirect versus direct outsourcing) In a seller and servicer bulletin released Thursday morning, Freddie Mac announced some very big changes to how it expects its servicers to manage their foreclosure and bankruptcy referrals to eligible legal counsel in key U.S. states. The changes represent the first time that a GSE has exerted direct influence over servicing practices in what is typically a widely unregulated area of mortgage banking.

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