Alert October 02, 2012

FHFA Releases Report on Its Loan Repurchase Program

The Office of the Inspector General of the Federal Housing Finance Agency released a report evaluating the FHFA’s and Freddie Mac’s loan repurchase program since the initial report was issued in September 2011. The OIG concluded that both the FHFA and Freddie Mac have addressed the issues raised in the initial report by adopting “a more expansive review process.” The initial report found shortcomings in Freddie Mac’s quality control process including overlooking of loans in default, The report concluded by recommending that FHFA and Freddie Mac continuing to improve its loan review process in light of the original findings.