By: Ben Mook

Government-sponsored mortgage giants Freddie Mac and Fannie Mae have outlined a plan to combat any deficiencies they might encounter during the foreclosure process.

“The country’s housing finance system remains fragile and I intend to maintain our focus on addressing this issue in a manner that is fair to delinquent households, but also fair to servicers, mortgage investors, neighborhoods and most of all, is in the best interest of taxpayers and housing markets,” Federal Housing Finance Agency Acting Director Edward J. DeMarco said in a statement announcing the plan.

The FHFA released the plan as the “robo-signing” scandal continues to grow. The FHFA is the regulator and conservator of Fannie Mae and Freddie Mac, and the regulator of the 12 Federal Home Loan Banks. Fannie and Freddie provide more than $5.9 trillion for domestic mortgage markets and financial institutions.

The plan, which seems pretty straightforward, is:

1. Verify the process: Review the process and procedures and make sure they’re legal.
2. Remediate any problems
3. Refer suspicion of fraudulent activity
4. Avoid delays: “In the absence of identified process problems, foreclosures on mortgages for which the borrower has stopped payment, and for which foreclosure alternatives have been unsuccessful, should proceed without delay. Delays in foreclosures add cost and other burdens for communities, investors, and taxpayers,” the agency wrote.