Freddie Mac is reviewing its procedures for examining mortgages after auditors faulted its handling of lapsed loans issued before the 2008 credit crisis, a government watchdog said in a report on the finance firm.
The mortgage-finance firm, which is operating under U.S. conservatorship, didn't do enough to find flaws that could've increased recovery of money from banks that sold defective loans, the Federal Housing Finance Agency's inspector general said in the report released today.
FHFA, the regulator that oversees Freddie Mac and larger rival Fannie Mae, suspended loan-repurchase agreements while the agency and the McLean, Virginia-based company explore ways to uncover more defective loans, according to the report.
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