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Freddie Mac and Its Regulator Faulted on Servicer Complaints

Freddie Mac and its regulator must do more to ensure loan servicers properly respond to complaints over handling of mortgages held or guaranteed by the U.S.-owned company, according to a government watchdog’s audit report.

Servicers who collect payments and deal with borrowers for Freddie Mac failed to implement Federal Housing Finance Agency guidelines for so-called escalated complaints, the FHFA’s Office of Inspector General said in the report released today. Freddie Mac failed to supervise the servicers and FHFA, which oversees the McLean, Virginia-based company and Washington-based Fannie Mae, didn’t ensure the procedures were followed.