The spate of Foreclosure Fraud that reared its head in late 2010 dated as far back as 2006, according to an internal Fannie Mae report that year.

That is according to a WSJ article. The Journal notes that the GSE’s lawyers were suspicious that Bank counsel was cutting corners to save money and time in their foreclosure process. Lost mortgage notes, false affidavits, material misrepresentations in recreated loan documents were surprisingly common actions.

“Fannie Mae was warned in a 2006 internal report of abuses in the way lenders and their law firms handled foreclosures, long before regulators launched investigations into the mortgage industry’s practices.

The report said foreclosure attorneys in Florida had “routinely made” false statements in court in an effort to more quickly process foreclosures and raised questions about whether some mortgage servicers or another entity had the legal standing to foreclose.”

Fannie claims they did not authorize such conduct, but they certainly failed to notify thew appropriate legal authorities about obvious criminality, either. Well, at least some of the Stater Attorney’s General are on the case . . .

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Source:
Fannie Report Warned of Foreclosure Problems in 2006
CARRICK MOLLENKAMP And NICK TIMIRAOS
WSJ, MARCH 25, 2011
http://online.wsj.com/article/SB10001424052748703784004576220582457540372.html

Category: Foreclosures, Legal, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Forclosure Fraud Dates to 2006”

  1. curbyourrisk says:

    Please don’t tell me you are surprised by this Barry. I have to much respect for you (despite enjoying a differing opinion on things) to believe that you did not already fully expect this.

  2. ByteMe says:

    I’m shocked, shocked to find that gambling is going on in here!

  3. Mike Dillon says:

    2006? 2006?!?!?! Surely, you jest!!

    The Federal Trade Commission was investigating then Fairbanks Capital Corp. n/k/a Select Portfolio Servicing as far back as 1999 for Mortgage Servicing Fraud issues that went into the making of USA/Curry v. Fairbanks in 2004. I’ve got the Civil Investigative Demands to prove it.

    I’ve also got constituent complaints of Mortgage Servicing Fraud from that time frame to U.S. Senators and Congresspeople including AZ Sen. John McCain and NY Sens. Charles Schumer and Hillary Clinton. IA AG Tom Miller was getting constituent complaints about then Fairbanks and Mortgage Servicing Fraud at least as far back as April 2002.

    Various Mortgage Servicing Fraud tricks and traits, including “robo-signing” have been going on since at least the mid-90s. Personally, I suspect that it began about 15 minutes after Mr. Ranieri securitized the inaugural batch…

    Hell, *I’ve* been yelling about this since 2001. 2006 my arse.

  4. budhak0n says:

    What exactly have you been “yelling” about? Please expand.