Mortgage servicers seem to be caught between a rock and hard place when it comes to foreclosures: their legal practices are being scrutinized by state attorneys general for sloppy paperwork while the GSEs pile on fees for delays in loss mitigation work.

According to Interactive Mortgage Advisors (IMA), Denver, penalties for late processing times on foreclosures “are now being implemented by the GSEs at the behest of [the Federal Housing Finance Agency (FHFA)] for lack of performing loss mitigation in a timely fashion.”

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