Freddie Mac has recently announced changes to lending regulation that will result in increased fees for mortgage servicers.
According to the government-sponsored enterprise, specific increases will be applied to fees associated with foreclosure revisions and violating reporting timelines. Servicers will be fined $5,000 if they fail to report on the status of at least 75 percent of the mortgages they deal with. The fee was previously set at $250.
"This compensatory fee is designed to recover the labor and other costs Freddie Mac incurs to correct this serious violation in a timely manner," Freddie Mac said.
Meanwhile, servicers who violate the new status report regulations will be charged an additional $10,000 for a second-time offense within a 12-month period. A third violation will result in a $15,000 fee.
However, in order to help servicers stay current on their status reports, the mortgage giant lowered the hourly rate for servicers to hire Freddie Mac professionals to help update mortgage records and archives from $100 per hour to $76 an hour.