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Freddie Mac Requires Mortgage Servicers to Review Verifications.

Posted By Cliff Tuttle | October 18, 2010

No. 522

Freddie Mac has mandated mortgage servicers to review all verifications to foreclosure documents relating to Freddie Mac cases to insure that the proper formalities were followed and that the person verifying the document had personal knowledge of the facts contained therein.  Thanks to April Charney, an attorney in Jacksonville FL, for forwarding the following notice to a real estate attorney’s listserve known as Dirt.


Freddie Mac is deeply concerned by recent news articles which report that affidavits used in foreclosure proceedings may have been executed inappropriately and without proper notarization. The practices described in these reports violate both applicable law and Freddie Mac’s contractual Servicing requirements as set forth in the Freddie Mac Single-Family Seller/Servicer Guide (“Guide”).

Process review

Each Servicer must conduct a review of its Servicing operations with respect to Freddie Mac foreclosures which are either: a) currently pending or b) within the applicable judgment review period in each State.

Specifically, the Servicer must determine whether:

â–  The Servicer’s policies, procedures and processes were and continue to be adequate to ensure that the affidavits executed in connection with these proceedings are in compliance with applicable law, including that the individuals signing the affidavits (“Affiant”) had personal knowledge of the facts and that signatures were properly notarized; and

â–  The Servicer’s employees and/or third parties responsible for executing affidavits supplied by the Servicer in these proceedings followed the above-described policies, procedures and processes, including those which required the Affiant to have personal knowledge of the facts and those which required proper notarization. If the Servicer cannot reasonably communicate with any such employee or third party directly, the Servicer should verify this information with the employee’s or third party’s former supervisor, to the extent possible.


The Servicer must complete its review by October 18, 2010.

In the event that the Servicer’s review creates any question as to whether: 1) its policies, procedures or processes regarding the execution of affidavits were adequate to ensure compliance with both applicable law and Freddie Mac’s Servicing requirements, or 2) its employees and/or third parties followed the proper policies, procedures and processes, the Servicer must immediately notify Freddie Mac at SRPMconfirmations@FreddieMac.com or (800) FREDDIE (and select “Servicing”).

The Servicer must also remedy any deficiencies identified in order to ensure compliance with applicable law and Freddie Mac’s Servicing requirements.

Freddie Mac reserves all rights and remedies available to it under the Guide and other Purchase Documents.


Tracy Mooney

Senior Vice President

Servicer Relationship & Performance Management


CLIFF TUTTLE has been a Pennsylvania lawyer for over 45 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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