Judge: Freddie Mac Cannot Face Claims Over Servicer's Failure To Pay Insurance

SEATTLE - A federal judge in Washington on Jan. 25 dismissed a man's claims for declaratory judgment and violation of the Real Estate Settlement Procedures Act (RESPA) after finding that the Federal Home Loan Mortgage Corp. (Freddie Mac) cannot be held liable for a loan servicer's failure to pay the borrower's insurance premium, thus requiring the acquisition of a force-placed insurance policy (Joel Johnson v. Federal Home Loan Mortgage Corporation, No. C12-1712 TSZ, W.D. Wash.; 2013 U.S. Dist. LEXIS 10485).

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