September 3rd, 2010 10:11 AM by Christopher Terry
Looks like Fannie Mae, the nations largest mortgage lender, is going to start cracking down on servicers to who delay taking action of defaults. In a notice issued this week Fannie Mae alerted servicers that it is monitoring all delinguent loans to see that they are handled in an acceptable time frames. From the notice, it looks like Fannie Mae wants non-performing loans off the books as soon as possible. In addition they say they may issue penaties to services who do not complete foreclosures in a timely manor. Fannie Mae says acceptable time frames in Massachusetts is 120 days and Rhode Island 90 days. Fannie Mae will communicate performance deficiencies with the service, allowing the servicer to explain any mitigating circumstances for delays.
We will have to wait and see if and/or how this new announcement will effect delinquent homeowners in Ma or RI. I'll keep you posted.