Freddie Mac said it will provide instructions to its servicers late Monday, directing them to "ensure that their foreclosure processes" are in compliance with state laws.
Freddie's directive follows one issued on Friday by Fannie Mae and is geared toward servicers that have admitted to cutting legal corners on processing foreclosures.
Mortgage bankers service roughly $5.2 trillion in Fannie/Freddie guaranteed loans or 53% of all outstanding mortgages in the U.S.
Freddie Mac chief operating officer Bruce Witherell said the GSE is "deeply concerned about recent reports that there may be affidavits that were improperly executed in connection with foreclosures. The alleged practices in these reports are clearly not in compliance with Freddie Mac's guidelines and directives to its servicers."
