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The FHFA Office of the Inspector General released a report criticizing the fee collection processes of Fannie Mae and Freddie Mac. The report noted that from 2009 to 2012, Fannie Mae collected no late fees. While the company said the cost of implementing a fee collection program was too expensive, the inspector general argued Fannie Mae never considered potential benefits. The OIG said the cost of the estimated $5.4 million implementation could have easily been recouped by fees collected from the program.
Freddie Mac was criticized by the OIG for a different problem. The report estimated the company lost $284 million in revenue from inconsistent fee collection. The inspector said lost revenue is unlikely to be collected, and ultimately hurts taxpayers. The OIG believes better reporting on assessed but uncollected fees will help stop lost revenue in the future.
According to a report from Bloomberg, Bank of America is expected to cut 450 mortgage jobs from the company's West Coast Offices. The bank reduced staff after new loan production fell short of internal forecasts. CFO Bruce Thompson cited a drop of 49% in retail originations to $11.6 billion in the fourth quarter. This is the fourth time in a year that Bank of America has reduced personnel. The firm cut 3000 employees in the last quarter of 2013.
