freddie mac party to a lawsuit
This is any event or circumstance having a material adverse effect on (a) the Seller/Servicers ability to perform its obligations under the Purchase Documents, (b) Freddie Macs interests as an assignee, (c) a class or significant group of borrowers, and/or (d) Freddie Macs economic interests. Find out if Freddie Mac owns your loan using our secure lookup tool. Meanwhile, someone with a credit score of 780 would pay 0.375% for that same loan, up from the previous 0.25%. What is a third-party originator (TPO) in terms of using Loan Product Advisor? For example, ABC Lendings analysis may identify XYZ Technologies as one of their Related Third Parties since they provide ABC Lending with origination platform technology services generally designed to advance ABC Lendings origination and/or servicing of mortgages. Can You Get Mortgage Approval if You Are the Plaintiff? Home Depot Propane Tank Delivery, freddie mac party to a lawsuit By on July 1, 2021 Prior to a public enforcement action being brought by the Commission against Freddie Mac, without admitting or denying liability, Respondent has offered to accept responsibility for its Private shareholders in Fannie Mae and Freddie Mac have spent years trying to recoup their investments. We recommend bookmarking the Guide link (Freddie Borrower employed by a family member or interested party to the transaction The lawsuits against us concerning the August 2012 amendment - 14, 2014. 3 The organizational documents for Delaware single-member LLCs must contain any necessary anti-dissolution c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? A TPO who uses Loan Product Advisor is a licensed originator of mortgage loans who does not have a Seller agreement or Seller/Servicer number with Freddie Mac. However, Fannie Mae and Freddie Mac officials characterized losses in 2021 from these events as very low or minimal. Save my name, email, and website in this browser for the next time I comment. Some examples of third-party organizations are: Freddie Mac defines a Security Incident as an instance from which the circumstances and available information a reasonable information security professional could conclude that unauthorized acquisition of data or computing resources, or unauthorized access to data or computing resources or any other security incident that may compromise the security, confidentiality, availability, integrity, or privacy of Freddie Mac information. It also ordered the companies to delist their shares. NEW YORK (Reuters) - Freddie Mac investors have filed expanded court claims accusing the mortgage finance company and three former executives of committing fraud by misleading them . The Federal Housing Finance Agency (FHFA) is a U.S. government agency that regulates the secondary mortgage market. ABC Lending is required to have information security and business continuity planning requirements in place with XYZ Technologies that are substantially similar to those by which ABC Lending is bound under Section 1302.2and 1302.3of the Guide; ABC Lending will likely already have such provisions in place with XYZ Technologies, particularly if the former is a regulated entity. Kmart Kitchen Storage Containers, You Want APIs. Both Fannie and its sibling enterprise, Freddie Mac, created in 1970 by Congress, promote a mission of facilitating equitable and sustainable access to homeownership, to quote the Federal Housing Finance Agency. These can take precedence over the lenders lien, leaving the lender nothing if it has to foreclose on you. Moreover, it has admitted to restating its earnings in 2002, resulting in a $111 million net loss in the first quarter of that year. 2023 - Gustan Cho Associates. If the plaintiff is asking for a substantial sum because of negligent acts, mortgage underwriters will look hard at the facts of your case. Prioritizing Your Security: Freddie Mac has been made aware of email and text correspondence that falsely state that they are from Freddie Mac and/or its senior leaders. Gustan Cho Associates are mortgage brokers licensed in 48 states including Washington DC, Puerto Rico, and the U.S Virgin Islands (Not licensed in NY and MA). An attorney is a person who practices law and is appointed to act for another party in a business or legal matter. Slip and Fall Settlements in Texas: How to Figure Out How Much Youre Worth. The Freddie Mac lawsuit cites several instances of accounting fraud. In some courts and cases, a defendant may be called a respondent. This is because limited liability corporations are structured where the members of the limited liability corporation are not personally liable for the debts of the LLC. The government has been accused of violating the Fifth Amendment by nationalizing these companies and ensuring that the companys finances are safe. Mortgage fee structure change will arrive May 1: Here's what to know The Bank is pursuing this lawsuit and Wells Fargo is suing this Defendant on behalf of, and at the express direction of another party, Freddie Mac. However, a 2012 amendment to the law has caused these two entities to pay back almost all of their profits. Fannie and Freddie Litigation Guidelines a Minefield for Condo Boards Freddie Mac also will not rely on a third party purchaser to retain risk pursuant to the CRR Rule, as may otherwise be permitted under Section 1234.7 (Commercial mortgage-backed securities). The SEC created the Federal Housing Finance Agency (FHFA) as a regulator of the companies. We have a national reputation of being a one-stop mortgage company due to not just being a mortgage company with no lender overlays but also offering dozens of non-QM and alternative financing loan programs. "Sandra L. Thompson Announced as Acting Director of FHFA.". PDF Updates to Seller/Servicer and 3 Party Risk Management Requirements Freddie Mac, the nation's second-largest financer of home mortgages, is paying a $50 million fine to settle civil securities fraud charges brought . Say somebody with a 639 score got a loan with 20% down. Since 2013, Thompson has overseen regulatory, capital, policy, and other issues for Freddie and Fannie. All Rights Reserved. The court's latest ruling means that the director can be quickly replaced. Background In the interest of removing any uncertainty over roles that may be part of senior management referenced in the Guide, and in Section 2101.12 in particular we have defined Senior Management as: A person who serves as one of the following positions for a Seller/Servicer: A third party (i.e., a Seller/Servicer counterparty such as a mortgage broker, correspondent, loan origination system vendor, contract underwriter, appraisal management company, data center, settlement agent, TPP (as defined in Section 1401.2), selling agent, servicing agent, document custodian, warehouse lender, outsourced vendor, mortgage insurer or reinsurer) that the Seller/Servicer engages to provide it with technology, origination, underwriting, processing, technical, interim financing, closing, loss mitigation, (re)insurance, servicing and other services and support that are generally designed to advance the Seller/Servicers origination and/or servicing of mortgages. Hi, looking for additional input on what documentation etc. Lenders will ask for a letter of explanation from your attorney. Does it matter if the security incident only affects loans sold, or to be sold, to Freddie Mac? rate or adjustable rate mortgages. The courts decision could have a significant impact on the future of the companys finances. What is a third-party originator (TPO) in terms of using Loan Product Advisor? What happens if you have a Limited Liability Corporation (LLC) and are a lawsuit party during the mortgage process? The lender will want to see your court filings and retainer if you are a plaintiff or a defendant of a lawsuit during mortgage process. PDF Uniform Residential Loan Application 2400: Access to Freddie Mac Tools and Systems. Over 80% of our clients are borrowers who could not qualify at other mortgage companies either due to a last-minute mortgage loan denial due to lender overlays or because the lender did not have the mortgage loan program suited for the borrower. That crisis helped push the U.S. economy into the worst recession since the Great Depression in the 1930s, and also fueled the most severe bear market in decades. Third Party Risk Management Requirement Updates FAQ - Freddie Mac Seller/Servicer Guide. Fannie, Freddie Subpoenaed in Commission Lawsuit February 18, 2020 Plaintiffs in an antitrust lawsuit that could shake up the real estate industry have subpoenaed mortgage giants Fannie Mae and Freddie Mac, sharpening scrutiny of real estate commissions nationwide. March 7, 2019 When deciding whether to lend money to potential buyers or to unit-owners who want to refinance their mortgage in a condominium, lenders follow guidelines issued by federally backed Fannie Mae and Freddie Mac, which buy mortgages from lenders. The investors in the Fannie Mae and Freddie Mac mortgage finance twins have lost their lawsuit against the government. That decision is likely to dramatically change the agency's future direction. Joe Light. Is Bidens credit score screw job even legal. The Crossword Solver finds answers to classic crosswords and cryptic crossword puzzles. It's time for the Federal Housing Finance Agency to make good on Fannie Mae and Freddie Mac's funding obligations to two affordable housing programs. Can You Get a Mortgage While Getting Sued? Single-Family Division. Hence, the plaintiffs case is not based on the same claims as to the two earlier actions. If the homeowner purchased a home under his own individual name and quit claimed the property in a limited liability corporation, the individual or member of the limited liability corporation will be personally liable and may affect them getting a mortgage. The Supreme Court's ruling means that Fannie and Freddie, which back approximately half of the mortgage market, will remain under government control for the time being. Case preview: The $124 billion questions - SCOTUSblog Their scope is sweeping, even if the dollar figure isnt always. Immediately following the court decision, President Biden exercised his new authority to dismiss current FHFA director Mark Calabria . It was unable to prevent the merger of Fannie Mae and Freddie with the United States Treasury. "Biden Removes Chief of Housing Agency After Supreme Court Ruling. In addition to bailouts, critics say that Fannie and Freddie get other advantages from the U.S. government. The fury is over the way the government tweaked its mortgage-fees structure, and, indeed, prospective buyers should note that some people with highercredit scorescould ultimately pay more, while some with lower credit scores could pay less. Biden's successor to Calabria is likely to focus on addressing the president's policy goals. Federal judge rules in favor of FHFA on net worth sweeps People with better credit scores have never paid fees this severeand this is separate from the lower interest rates they getand in fact sometimes theyre charged a $0 fee. The latest FNMA lawsuit has been rejected by the U.S. Supreme Court. 2 News, Weather Forecast, NMLS# 1660690, Corporate Address: 3100 Ray Road Suite 201 Office # 209 | Chandler AZ 85226 They want to know that the insurers attorneys are representing the borrower. As with related requirements underBulletins 2021-31 and 2021-32, this expansion of the third-party designation requirement is intended to help Freddie Mac manage risk by providing a contractual basis to enforce certain rights directly against the Related Third Party when a Seller/Servicer is unwilling or unable to do so. . Freddie Mac, No. Can a Defendant in a Lawsuit During Mortgage Process Get a Home Loan? The U.S. Supreme Court is poised to consider the fate of a lawsuit that could mean billions of dollars for shareholders of Fannie Mae and Freddie Mac and affect the push to end federal . By contrast, the decision was a major victory for President Joe Biden, though he and his administration weren't original parties in the case. Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn Share on Email Share on Reddit In this, Continue Reading FHA Loans vs VA Loans: Comparing Mortgage OptionsContinue, Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn Share on Email Share on RedditThis Article On, Continue Reading Moving To New Home And Qualifying For Home MortgageContinue, Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn Share on Email Share on RedditThis Article Is, Continue Reading Factors Affect Pre-Approval And Stress During Mortgage ProcessContinue, Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn Share on Email Share on RedditBREAKING NEWS: 2020, Continue Reading 2020 Mortgage Guidelines Update During Coronavirus Pandemic CrisisContinue, Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn Share on Email Share on RedditBREAKING NEWS: The, Continue Reading The 2 Trillion Stimulus Will Devastate The Mortgage MarketsContinue, Continue Reading Qualifying For Mortgage With Bad Credit And Late PaymentsContinue, Gustan Cho Associates Mortgage is licensed in 48 States (Not Licensed in NY, MA), Select your State Gustan Cho Associates is a dba of NEXA Mortgage, LLC and is licensed in 48 states including Washington DC, Puerto Rico, and the U.S. Virgin Islands. These include white papers, government data, original reporting, and interviews with industry experts. These cases are important for the housing industry and the American public. This definition is purposefully designed to capture a broad range of circumstances impacting borrowers, our counterparties, and our economic interests. Gustan Cho NMLS 873293 is the National Managing Director of NEXA Mortgage, LLC dba as Gustan Cho Associates NMLS 1657322. If the subject property is an attached condominium unit and zoning compliance is legal nonconforming, the loan file must indicate that the subject property can be rebuilt to current density if Please consult with your legal counsel and/or a compliance services vendor to ensure that your loans comply with all applicable laws, regulations, etc. The team at Gustan Cho Associates has a national reputation for its no lender overlays business platform. Allow single person or business to own more than two units in a development (for . Agency Case No. Its time to fight back! freddie mac party to a lawsuit - Los Feliz Ledger Latest Updates on the Fannie Mae and Freddie Mac Lawsuit Update Resources to help you rent, buy, and own your home. FAQ: Top Trending Selling FAQs | Fannie Mae Homebuying and Homeowning Glossary of Terms - Freddie Mac Do You Disclose You Are in a Lawsuit During Mortgage Process? The Freddie Mac Securitized Participation Interests Trust, Series 2017-SPI1 (the SPI Trust) will issue If an unauthorized Conveyance occurs, the Servicer and purported Secured Party, to the extent such Secured Party is a Freddie Mac Seller/Servicer, are jointly and severally liable to Freddie Mac with respect to any losses, costs and damages (including, but not limited to, attorney fees and related court and legal costs) incurred by Freddie Mac arising out of or related to the unauthorized Conveyance. Several months ago, the United States Supreme Court ruled that the investors in Freddie Macs stock failed to properly disclose their investment strategies, allowing them to pursue legal action against the government. Non-Warrantable vs Warrantable Condos: Rules and How to Finance Them Freddie Macs standard Acknowledgment Agreement requires a Secured Party to execute a Release (as these terms are defined in Guide Exhibit 33, Acknowledgment Agreement Incorporated Provisions). How Underwriters View Borrowers in a Lawsuit During Mortgage Process. The three forcible detainer claims are based on the same claims as to the two earlier actions. Despite the large financial problems faced by borrowers, the company managed to keep its operations afloat. Understanding the House Price Index (HPI) and How It Is Used, Dodd-Frank Act: What It Does, Major Components, Criticisms, Conforming Loan: What It Is, How It Works, Vs. Finance. This type of organizational structure is often criticized for privatizing profits while socializing risks. ", Wall Street Journal. Freddie Mac STRUCTURED AGENCY CREDIT RISK (STACR) 2018-DNA3 NOTES, FREDDIE MAC STACR Trust 2018-DNA3 Offered Notes: The Classes of Original Notes and Classes of MAC Notes shown below and on Table 1. This is not disputed. The Supreme Court opened the door to major changes at the agency when it ruled on June 23 that FHFA's structure was unconstitutional because of its lack of accountability to the president of the United States. Borrowers who are the plaintiffs in a lawsuit during mortgage process, do not be concerned. Technology providers/ servicing platforms. December 16, 2011, 7:29 PM. Your email address will not be published. Home Depot Propane Tank Delivery, 3100: Freddie Mac Exclusionary List and FHFA Suspended Counterparty Program. 2 The springing member must consist of either one entity or two individuals. The Freddie Mac lawsuit also aims to recover losses incurred by investors in the mortgage industry. If mortgage applicants are defendants in a lawsuit, they need to mark the YES box on the mortgage loan application where it asks whether they are a party to a lawsuit. Surprisingly, Fannie Mae and Freddie Mac do not prohibit loans to borrowers involved in lawsuits. A). In response, the government argued that the FHFA was granted broad legal authority in order to ensure the solvency of Fannie and Freddie, and to protect the country's investment in the two companies. Freddie Mac may remove a Single Counsel from the list at any time in its sole discretion. It was not until late 2002 that the Company was forced to restate its earnings. This term had been defined in substantially this manner in the Guides Master Systems License (Section 2401.1), and has been updated and moved to the Glossary, given its broader application throughout the Guide. There are no issues if you are a lawsuit plaintiff during the mortgage process. The agency was given oversight of Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) tasked with supporting homeownership by providing liquidity to the mortgage market. Broadly, the fees will go down for . (Complaint, Ex. In the event of a conflict between the content of these FAQs and the Guide, the Guide shall remain the operative contract between Freddie Mac and each Seller/Servicer . Here are both sides of the Collins lawsuit over Fannie Mae, Freddie Mac. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, has been granted summary judgment on one of the last remaining claims by investors in a lawsuit alleging. Fees have been tweaked up or down, almost equally, 50-plus times in the new government matrix. They will determine if Freddie Mac is required to pay the investors money or not. Their mandate is to promote affordable housing. While the lawsuit against the FNMA may have been filed in 2010, the case is still ongoing. Financial and homeownership education resources all about you. Freddie Mac, the nation's second-largest financer of home mortgages, is paying a $50 million fine to settle civil securities fraud charges brought by federal regulators in a four-year accounting lapse. Save my name, email, and website in this browser for the next time I comment. No. If a Related Third Party notifies us of a Security Incident, are we obligated to notify Freddie Mac of that Security Incident? Here Are the Players in the Supreme Courts Student Loan Case, Lawyers and Justices Spar Over Student Loan Forgiveness in Supreme Court. Freddie Mac's exposure to Subprime and Alt-A mortgages (collectively, the "Investigation"). The Federal Housing Finance Agency has been forced to take action to protect investors after the collapse of the housing bubble in 2008. B4-2.1-03, Ineligible Projects (10/07/2020) - Fannie Mae Not all mortgage lenders will approve mortgage loans in a home under a limited liability corporation. Pink Sports Jacket Men's, Those charged include the men who were chief executives of these government-chartered mortgage enterprises. 3400: Quality Control. If you are a plaintiff in a lawsuit during mortgage process, the defendant can countersue. Under Section 2101.12(f)(2)(d), Seller/Servicers will be required to notify Freddie Mac of any change to its agreement with a Related Third Party that is likely to have a Material Adverse Effect, which is defined as any event or circumstance having a material adverse effect on (a) the Seller/Servicer's ability to perform its obligations under the Purchase Documents, (b) Freddie Mac's interests as an assignee, (c) a class or significant group of Borrowers, and/or (d) Freddie Mac's economic interests.Seller/Servicers will have to make a determination as to whether a change to its relationship with a particular Related Third Party is impactful enough (i.e., would likely have a Material Adverse Effect) that would require a notification to Freddie Mac. Filing a notice of removal to federal district court for any legal action in which Freddie Mac is a named party Asserting any position in a legal action that relates to Freddie Mac's status as a Government Sponsored Enterprise (GSE), its conservatorship, or its conservator, FHFA Select and download the desired Multifamily Loan Document. 2 News, Weather Forecast, Your email address will not be published. Your email address will not be published. If the borrower defaults on the loan the trustee will sell the property and pay the lender the mortgage debt. The Supreme Court's ruling on the Federal Housing Finance Agency (FHFA) is likely to bring major changes to the U.S. housing industry, which is fueled by trillions of dollars in loans. During his term, he aggressively pushed to privatize both Fannie and Freddie. Heres what Fannie Mae says: Fannie Mae does not have a policy regarding a borrower who is a party to a lawsuit. +0.00 +1.08%. Just because someone is a defendant in a lawsuit during the mortgage process does not mean he or she cannot qualify for a mortgage. The Bank is merely Freddie Macs agent and Freddie Mac is the Principal who is directing this action. Freddie Mac continually updates our Guide to address evolving risks in the mortgage and related industries. Does a Lawsuit Affect Mortgage Loan Application? Freddie Mac It argued it was entitled to enforce the note as a nonholder in possession of the instrument with the rights of a holder, and that the failure to be a real party in interest at the time of filing the suit can be cured pursuant to Civ. Company NMLS 1660690, Gustan Cho NMLS #873293 "Playing Semantic Games With Fannie and Freddie Investors. Heres What To Expect. ", Yahoo! Enter the length or pattern for better results. g. PMI, MIP, Funding Fee e. Have you directly or indirectly been obligated on any loan of which resulted in foreclosure, transf er of title in lieu of foreclosure, or judgment? The Supreme Court's ruling concerned legal issues that arose from a 2012 decision by the FHFA to direct all of Fannie and Freddie's profits to the Treasury . During the housing bubble, Fannie Mae and Freddie Mac generated massive losses and fueled the Great Recession. There are a handful of cases where borrowers whose credit scores are above 700 could pay fees of 0.125% to 0.75% more, depending on their down payment size. The deal ended up being incongruous with the shareholders and imposed a legal burden on the United States. 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freddie mac party to a lawsuit