- The Big Picture - http://www.ritholtz.com/blog -

Forclosure Fraud Dates to 2006

Posted By Barry Ritholtz On March 25, 2011 @ 7:19 am In Foreclosures,Legal,Markets | Comments Disabled

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 [1] 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 . . .

>

Source:
Fannie Report Warned of Foreclosure Problems in 2006 [1]
CARRICK MOLLENKAMP And NICK TIMIRAOS
WSJ, MARCH 25, 2011
http://online.wsj.com/article/SB10001424052748703784004576220582457540372.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2011/03/forclosure-fraud-dates-to-2006/

URLs in this post:

[1] WSJ: http://online.wsj.com/article/SB10001424052748703784004576220582457540372.html

Copyright © 2008 The Big Picture. All rights reserved.