UTA Meets With FHFA Regarding New Rules for Foreclosure Legal Services

Elizabeth Knight

On February 2nd, a UTA delegation met with Federal Housing Finance Agency (FHFA) officials in McLean, Virginia to discuss new guidelines for default and foreclosure-related legal services.  Fannie Mae and Freddie Mac are phasing out their existing Designated Counsel and Retained Attorney Network Program and adopting uniform standards for servicers and law firms providing default and foreclosure-related legal services.

The UTA delegation consisted of UTA President, T. Robert Finlay, Esq., Wright Finlay & Zak; UTA Past-President, Rande Johnsen, Trustee Corps; Elizabeth Knight, PLM Lender Services; and Michelle Mierzwa, Esq., Cal-Western Reconveyance Corp.

According to Finlay, the meeting went well:  “It was clear from the conversation that the FHFA’s proposed guidelines only identified ‘attorneys’ as those who potentially could qualify to handle Fannie and Freddie loans.  This wasn’t intentional on their part.  Instead, it was based on a lack of understanding of the nonjudicial process.  The FHFA indicated that it was willing to change the language to ‘attorney, trustee or other qualified entity’ can handle foreclosures.  While we won’t know for sure until the new guidelines are finalized, all indications are that we accomplished the goal of our meeting.”

UTA prepared a position paper on the issue and provided that to FHFA.

Read UTA’s Position Paper.