Fannie Mae and Freddie Mac perhaps have the most to lose in the foreclosure fiasco. They have already suggested they'll get more litigious with banks and mortgage originators, and seem bent on getting better service when it comes to winding down loans one way or another.

Fannie Mae has reassigned servicing on roughly 200,000 loans, placing a large chunk with Nationstar Mortgage, a unit of Fortress Investment Group, Reuters reports. Freddie Mac is also said to be considering hiring more special servicers that are tasked with working with delinquent borrowers. Ocwen and Wilshire Credit are mentioned as firms that also might benefit from this trend.

It turns out that mainstream mortgage servicers aren't the best workout specialists, especially when there are lots of questions about what exactly the mortgage services have a grip on. This may be the best arrangement for all.

True, if banks and mortgage services transfer more work to others, it would represent lost revenue. But the system really needs to work off the dubious foreclosure situation and allow the market to finally reset. Hopefully, specialized mortgage services can work the backlog more efficiently.

For more:
- here's the article

Related Articles:
Perhaps the threat of foreclosure litigation is overblown
Proposed law aims to correct mortgage service companies' conflicts
Fannie and Freddie bailout to cost $1 trillion?
Wealthy homeowners to strategically default in droves?