Monday, February 6, 2012

Foreclosure watch: A bombshell on mortgage fraud and Fannie Mae

Turns out, a confidential 147-page investigation into mortgage fraud commissioned by Fannie Mae uncovered some of the very abuses bedeviling homeowners today. Yet Fannie appeared to take no action on the 2006 report. The investigation was triggered by a wealthy businessman's allegations in 2003 that servicers were filing false foreclosure documents and "playing fast and loose with the law."

"It is axiomatic that the practice of submitting false pleadings and affidavits is unlawful," said the report, a copy of which was obtained by The New York Times. "With his complaint, Mr. (Nye) Lavalle has identified an issue that Fannie Mae needs to address promptly."
Mr. Lavalle and Fannie's investigators found lawyers filing "sham proceedings" in eight states on behalf of either Fannie Mae or the Mortgage Electronic Registration System (MERS).

Read the rest of the article at Oregon Live

No comments:

Post a Comment