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DS News: Lawmaker Questions If GSE Penalties Contributed to Foreclosure Abuses

Representative Elijah Cummings (D-Maryland) is questioning if the Fannie Mae and Freddie Mac’s policies contributed to foreclosure issues such as robosigning as documents obtained by the representative show the nation’s two largest mortgage financiers assessed $150 million in fines against the GSEs last year for not processing foreclosures fast enough. Cummings sent a letter to Edward DeMarco, acting director of the Federal Housing Finance Agency, stating how the fines ordered by the FHFA may have contributed to the abuses by mortgage servicing companies and law firms to meet deadlines and expedite foreclosures. Read more in DS News.