The Federal Housing Finance Agency (FHFA) is considering litigation against mortgage lenders and insurance providers for allegedly colluding to overcharge Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) over the last few years.
“Our analysis suggests that the Enterprises have suffered considerable financial harm in the LPI market,” says a recent FHFA Office of Inspector General report. “We estimate that—in 2012 alone—the Enterprises’ combined financial harm amounted to $158 million due to excessively priced LPI coverage.”
Fannie Mae, Freddie Mac: LPI providers overstated their loss ratios
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) require that homeowners maintain...
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