Fannie Mae wants out of its defaulted residential mortgage holdings as quickly as possible and is warning loan servicers not to stand in its way.

The GSE notified servicers Tuesday that it will begin monitoring them to determine why there are delays in moving delinquent loans into foreclosure. If servicers cannot properly account for the holdups, it will perform onsite reviews and assess fees to give servicers "a financial incentive to comply with Fannie Mae policies and improve the overall quality of their performance."

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