MCLEAN, VA--(Marketwired - Feb 2, 2016) - Today Freddie Mac (OTCQB: FMCC) published guidelines for a new independent dispute resolution process pdf for alleged breaches of selling representations and warranties on mortgages sold to Freddie Mac.
SVP, Division Chief Risk Officer, Single-Family Donna Corley made the following statement:
"Today's announcement finishes a four-year process to give our lenders a simpler, clearer, and more certain representations and warranties framework for originations. The final piece is a new independent dispute resolution (IDR) process for handling alleged loan-level breaches of selling representations or warranties that are unresolved after completing our appeals process. This process empowers lenders to refer these disputes to a neutral third party for a final decision. The transformation of the representation and warranties framework was undertaken at the direction of the Federal Housing Finance Agency to Freddie Mac and Fannie Mae. Today's announcement underscores the steady fulfillment of our commitment to work with all stakeholders to strengthen America's mortgage finance system."
See http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1601.pdf pdf for more information.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for approximately one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog.
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.