Federal housing regulators are being urged to sue insurers and mortgage servicers over alleged overcharging for force-placed insurance on troubled homeowners during the housing crisis.
The report to the Federal Housing Finance Agency (FHFA) by its Office of Inspector General (OIG) estimates Fannie and Freddie to have overpaid for insuring properties where the borrower was in default by $158 million in 2012 alone.
Rep. Maxine Waters, D-Calif., ranking minority member of the House Financial Services Committee, lauded the report, calling the overpayment estimate a “staggering figure” and saying it “represents direct losses borne by the taxpayer.”
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