That Pile Of Documents Signed When Taking Out A Home Mortgage!

A homeowner sued the Federal Home Loan Mortgage Corporation “Freddie Mac” for breach of contract and breach of fiduciary duty. Freddie Mac had purchased the homeowner’s mortgage from the loan originator on the secondary market. The loan originator continued to service the loan and failed to pay the insurance premium from an escrow account which caused the homeowner’s insurance to be cancelled. The federal district court dismissed the complaint against Freddie Mac. The Ninth Circuit affirmed because the homeowner “expressly agreed in the mortgage contract that a subsequent purchaser of the loan would not assume any servicing obligations.” (Johnson v. Fed. Home Loan Mortg. Corp. (Ninth Cir. July 14, 2015) 793 F.3d 1005.)