GTE CEO Faults Fannie on Foreclosure
The 177,000-member, $1.4 billion GTE Federal Credit Union faces a $51,000 fee from Fannie Mae because it only used foreclosure attorneys the government-backed mortgage giant approved and ordered it to use.
Fannie assessed the fee after a Fannie Mae-owned mortgage that GTE serviced fell into default and then into foreclosure. By itself that would not have generated a fee. But the mortgage took longer to move through the process than Fannie Mae believed it should have taken and, because of that, the housing giant assessed the fee.
Brancucci made the point in a letter to Credit Union Times that both these attorneys had approved and selected both law firms before telling the CU to stop using them in the middle of ongoing foreclosure cases. In these cases, the process had to be restarted, adding months to the foreclosure timeline and making the loan late and leading to the fees.
Brancucci emphasized that the GTE does not disagree that foreclosures should be conducted by Fannie Mae-endorsed attorneys, but the CU doesn't believe the CU should be forced to pay for the mortgage giant's failure to adequately screen and select the law firms it endorses.