Fannie Mae Knew of Foreclosure Fraud in 2005

Posted on September 28, 2011

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Fannie Mae Knew of Robo-Signing Fraud in 2005 - and did NOTHING

Fannie Mae Knew of Robo-Signing Fraud in 2005 - and did NOTHING

Fannie Mae Knew of Robo-Signing Fraud in 2005 - and did NOTHING

“WASHINGTON — Fannie Mae missed chances to catch law firms illegally signing foreclosure documents and its government overseer did not take the right steps to ensure Fannie was doing its job, according to a federal watchdog.

The Federal Housing Finance Agency’s inspector general said in a report Friday that Fannie failed to establish an “acceptable and effective” way to monitor foreclosure proceedings between 2006 and early 2011. FHFA then failed to ensure it was complying with demands that it clean up its programs.

Mortgage industry employees – including law firms employed by Fannie Mae – signed documents they hadn’t read and used fake signatures on foreclosure cases across the country. The practices, known collectively as “robo-signing,” resulted in a suspension of foreclosures last fall and a probe by all 50 state attorneys general into how corners were cut to keep pace with the crush of foreclosure paperwork.

In 2005, Fannie hired outside investigators to look into allegations about faulty foreclosure documents. A year later, Fannie received a report from the investigators that found law firms working for Fannie had filed false documents.”

The important point here is that Fannie Mae did nothing about the fraud. They just let it continue. This is why you need to take action to defend yourself – even if you already lost your home. Call me at 202-285-5415 to talk about your options.

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