Foreclosing on a Freddie Mac mortgage takes an average 15 months to complete, according to the company's blog Monday, adding that the secondary market giant pays billion of dollars a year to mortgage servicers to ensure this is the option of last resort.
Timelines are even longer at the nation's largest lender, Bank of America (BAC: 13.72 +0.88%). According to its fourth quarter earnings report, the average BofA foreclosure has spent 19 months in delinquency.
In January, the FHFA announced that Fannie and Freddie would be working with regulators and these servicers to develop a new national standard for how mortgages will be serviced in the future, addressing several problems with documentation and fees.
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