SOURCE: Freddie Mac

Freddie Mac

February 02, 2016 11:05 ET

Freddie Mac Statement on New Independent Resolution Process for Representation and Warranties Disputes

MCLEAN, VA--(Marketwired - Feb 2, 2016) -  Today Freddie Mac (OTCQB: FMCC) published guidelines for a new independent dispute resolution process 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 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.