Californiaforeclosurefraud website:
(Reuters) - Fannie Mae and Freddie Mac are in talks with U.S. title insurers to require mortgage servicers to assume insurers' liabilities if there are legal challenges to foreclosures on homes whose mortgages Fannie and Freddie underwrote, a source familiar with the matter said on Friday.
Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), which are controlled by the U.S. government, together own or guarantee more than half of the $11 trillion of U.S. home mortgages.
Allegations that some banks used shoddy paperwork in processing foreclosures has sparked a wave of lawsuits, and more borrowers are expected to challenge foreclosures in court.
Title insurers are meeting with Fannie & Freddie to hammer out a broader agreement with banks and title insurers.
The disputed foreclosures could create a headache for title insurance companies, which protect homeowners against the risk of a prior owner claiming to still have a legal right to the property.
Fannie Mae and Freddie Mac are negotiating with the American Land Title Association, the trade group for title insurers, to ensure that any legal costs associated with faulty foreclosure paperwork by loan servicers are borne by the servicers, the source said. Both Fannie and Freddie declined to comment.
Fidelity Title has taken action. Fidelity Title will require a warranty from lender on bank owned sales effective November 1.Read on.
(Reuters) - Fannie Mae and Freddie Mac are in talks with U.S. title insurers to require mortgage servicers to assume insurers' liabilities if there are legal challenges to foreclosures on homes whose mortgages Fannie and Freddie underwrote, a source familiar with the matter said on Friday.
Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), which are controlled by the U.S. government, together own or guarantee more than half of the $11 trillion of U.S. home mortgages.
Allegations that some banks used shoddy paperwork in processing foreclosures has sparked a wave of lawsuits, and more borrowers are expected to challenge foreclosures in court.
Title insurers are meeting with Fannie & Freddie to hammer out a broader agreement with banks and title insurers.
The disputed foreclosures could create a headache for title insurance companies, which protect homeowners against the risk of a prior owner claiming to still have a legal right to the property.
Fannie Mae and Freddie Mac are negotiating with the American Land Title Association, the trade group for title insurers, to ensure that any legal costs associated with faulty foreclosure paperwork by loan servicers are borne by the servicers, the source said. Both Fannie and Freddie declined to comment.
Fidelity Title has taken action. Fidelity Title will require a warranty from lender on bank owned sales effective November 1.Read on.
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