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View Full Version : Fannie Mae Knew Early of Abuses, Report Says



Qtec
02-07-2012, 04:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Fannie Mae, the mortgage finance giant, learned as early as 2003 <span style='font-size: 14pt'>of extensive foreclosure abuses</span> among the law firms it had hired to remove troubled borrowers from their homes. <u>But the company did little to correct the firms’ practices,</u> according to a report issued Tuesday </div></div> link (http://www.nytimes.com/2011/10/04/business/fannie-mae-ignored-foreclosure-misdeeds-report-says.html)

Good eh? An organisation that exists to help lower income earners buy their own house, the American Dream so to speak, ignores multiple warnings that said people are being foreclosed on illegally, thrown out of their houses and does nothing!

I came upon this through this story. A Mortgage Tornado Warning, Unheeded (http://www.nytimes.com/2012/02/05/business/mortgage-tornado-warning-unheeded.html)

If you haven't read it, you should.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">But after losing a family home to foreclosure, under what he thought were fishy circumstances, <u>Mr. Lavalle, founder of a consulting firm called the Sports Marketing Group, began a new life as a mortgage sleuth. In 2003, when home prices were flying high, he compiled a dossier of improprieties on one of the giants of the business, Fannie Mae.</u>

In hindsight, what he found looks like a blueprint of today’s foreclosure crisis. Even then, Mr. Lavalle discovered, some loan-servicing companies that worked for Fannie Mae routinely filed false foreclosure documents, not unlike the fraudulent paperwork that has since made “robo-signing” a household term. Even then, he found, the nation’s electronic mortgage registry was playing fast and loose with the law — something that courts have belatedly recognized, too.

<span style='font-size: 14pt'>You might wonder why Mr. Lavalle didn’t speak up. But he did. For two years, he corresponded with Fannie executives and lawyers. Fannie later hired a Washington law firm to investigate his claims. In May 2006, that firm, using some of Mr. Lavalle’s research, issued a confidential, 147-page report corroborating many of his findings.</span>

<span style='font-size: 26pt'>And there, apparently, is where it ended.</span> There is little evidence that Fannie Mae’s management or board ever took serious action. Known internally as O.C.J. Case No. 5595, in reference to the company’s Office of Corporate Justice, this 2006 report suggests just how deep, and how far back, our mortgage and foreclosure problems really go. </div></div>

Q

LWW
02-07-2012, 06:20 AM
So you spent years swearing FANNIE/FREDDIE were clean ... because the regime told you FANNIE/FREDDIE were clean ... and now you flip and say FANNIE/FREDDIE were dirty because the regime now tells you that FANNIE/FREDDIE were dirty.

Here's a few things you need to find answers to ... who was trying to rein FANNIE/FREDDIE in? Who was head of the banking committee giving FANNIE/FREDDIE cover? Who was Franklin Raines? What part did he play? Who appointed him? Which party claimed it was <span style='font-size: 11pt'>RAAAAY - SIZZZZM</span> to investigate FANNIE/FREDDIE? Who did FANNIE/FREDDIE donate to?

eg8r
02-07-2012, 09:39 AM
LOL, we all know you think you are on to something but you were defending Fannie and Freddie like crazy up till now. We have told you they were in the thick of it ever since the beginning.

eg8r

LWW
02-07-2012, 10:19 AM
In all fairness to the snoop, he is only repeating what the regime tells him that his "OPINION" is today.

You can't blame a parrot for picking up bad language.

Qtec
02-08-2012, 02:10 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">So you spent years swearing FANNIE/FREDDIE were clean </div></div>

No I didn't. I said they were not responsible for the fraud. This is something different. Here we have absolute proof that they knew there was a problem but did nothing about it.

Q

Qtec
02-08-2012, 02:14 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">LOL, we all know you think you are on to something but you were defending Fannie and Freddie like crazy up till now. We have told you they were in the thick of it ever since the beginning.

eg8r </div></div>

What you said was its all Fannie and Freddie's fault. I disagreed.

Q

LWW
02-08-2012, 04:11 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> <div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">So you spent years swearing FANNIE/FREDDIE were clean </div></div>

No I didn't. I said they were not responsible for the fraud.

Q </div></div>
And, as usual, you were wrong. (http://www.nytimes.com/2006/12/07/business/07fannie.html?ref=franklindraines)

From the reich wing New York Times, the tip of the iceberg was first commonly seen in 2006:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Fannie Mae, the largest buyer of American mortgages, said yesterday that it would reduce its earnings by $6.3 billion to correct several years of accounting problems in one of the nation’s biggest financial scandals.

Daniel Mudd, Fannie Mae’s chief, in his Washington office last winter.
Federal regulators, meanwhile, said they planned to file a lawsuit before the end of the year in an effort to recover millions of dollars from Fannie Mae’s former top two executives, whose bonuses were tied to the manipulated earnings. Franklin D. Raines, the former chairman and chief executive, and J. Timothy Howard, who had been chief financial officer, were ousted from the company in December 2004, and investigators have laid much of the blame on their shoulders.

“We will file charges within the next couple of weeks,” James B. Lockhart III, director of the Office of Housing and Enterprise Oversight, said in a brief interview yesterday. “Unfortunately, the legal process is very cumbersome.”

A lawyer for Mr. Raines declined to comment, and a lawyer representing Mr. Howard did not return phone calls yesterday. A Fannie Mae spokesman also declined to comment.

The two moves are significant steps in the effort to clean up Fannie Mae — formally, the Federal National Mortgage Association — a company whose influence once reverberated through the corridors of Washington and Wall Street. Over the last two years, though, the company has been mired in scandal.

Federal investigators have searched through the company’s records, leading the Securities and Exchange Commission and the Office of Housing and Enterprise Oversight, or Ofheo, to exact a $400 million civil penalty in May. </div></div>

Next lame excuse?

eg8r
02-08-2012, 09:36 AM
Sorry flip flopper but we never said it was all Fannie and Freddie's fault and you always said it was NONE of their fault. As you can see I said they were "in the thick of it" which in no way implies I believe they were the only culprits.

Be a man and admit your mistake.

eg8r

LWW
02-08-2012, 06:51 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">Be a man and admit your mistake.

eg8r </div></div>
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Now THAT'S funny.

Qtec
02-09-2012, 12:28 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Sorry flip flopper but we never said it was all Fannie and Freddie's fault </div></div>

WE never said? Don't make me laugh. LOL

You put all the blame on the guy who defaulted and LWW put ALL the blame on Fannie and Freddie. Both of you have consistently defended the banks. Both of you are incapable of separating issues.
This is not about the Credit Crisis, this is about the Robo-signing scam when people were being foreclosed on with false documentation.

Q

LWW
02-09-2012, 05:04 AM
Actually ... that's not what this is about at all.

Think it through.

eg8r
02-09-2012, 08:57 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">You put all the blame on the guy who defaulted </div></div>OK, so you are no man enough to admit your mistakes and in an attempt to cover up your foolishness you revert to lying. I guess inherently you will revert to what comes easiest, to what you do best.

eg8r

Qtec
02-09-2012, 10:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">You put all the blame on the guy who defaulted </div></div>OK, so you are no man enough to admit your mistakes and in an attempt to cover up your foolishness you revert to lying. I guess inherently you will revert to what comes easiest, to what you do best.

eg8r </div></div>

What mistakes? What lies?

Did Fannie Cause the Disaster?

I said no and I still say no.

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"><span style='font-size: 14pt'> The Big Lie</span>
By JOE NOCERA
Published: December 23, 2011



<span style='font-size: 14pt'>So this is how the Big Lie works.</span>


You begin with a hypothesis that has a certain surface plausibility. You find an ally whose background suggests that he’s an “expert”; out of thin air, he devises “data.” You write articles in sympathetic publications, repeating the data endlessly; in time, some of these publications make your cause their own. Like-minded congressmen pick up your mantra and invite you to testify at hearings.

You’re chosen for an investigative panel related to your topic. When other panel members, after inspecting your evidence, reject your thesis, you claim that they did so for ideological reasons. This, too, is repeated by your allies. Soon, the echo chamber you created drowns out dissenting views; even presidential candidates begin repeating the Big Lie.

Thus has Peter Wallison, a resident scholar at the American Enterprise Institute, and a former member of the Financial Crisis Inquiry Commission, almost single-handedly created the myth that Fannie Mae and Freddie Mac caused the financial crisis. His partner in crime is another A.E.I. scholar, Edward Pinto, who a very long time ago was Fannie’s chief credit officer. </div></div>

link (http://www.nytimes.com/2011/12/24/opinion/nocera-the-big-lie.html?_r=1)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Peter Wallison, a fellow of the American Enterprise Institute, who wrote an angry dissent to the findings of the Financial Crisis Inquiry Commission (FCIC), which was appointed by Congress to investigate the causes of the crash.1 Contrary to Wallison, <span style='font-size: 14pt'>the nine other members of the commission, including three others appointed by Republicans, concluded that Fannie and Freddie were not the main causes of the crisis.</span>

<span style="color: #000099"><u>Along with many other experts, </u>the nine members pointed to considerable evidence that, despite large losses, these government-sponsored enterprises (GSEs), as they are known, bought or guaranteed too few highly risky loans, <u>and did so too late in the 2000s, to cause the crisis.</u></span> </div></div>


link (http://www.nybooks.com/articles/archives/2011/oct/27/did-fannie-cause-disaster/?pagination=false)


What were the Republicans saying at the time?

link (http://politicalcorrection.org/factcheck/201110140001#blame)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Republicans Blame The Financial Crisis On Fannie Mae, Freddie Mac, And Government Policy

Speaker Boehner: "Government Mortgage Companies...Triggered The Whole Meltdown." From House Speaker John Boehner's (R-OH) May 9, 2011, speech on Wall Street: "And the government mortgage companies that triggered the whole meltdown went untouched."

[b]Sen. Graham: "Fannie Mae And Freddie Mac" Were Behind "The Problem That Got Us Into This Mess." </div></div>

MY opinion hasn't changed.

Q

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Most recently, competition between mortgage securitizers led to a race to the bottom on mortgage underwriting standards that ended in the late 2000s financial crisis. This article provides original evidence that when competition was less intense and securitizers had more market power, securitizers acted to monitor mortgage originators and to maintain prudent underwriting. However, securitizers’ ability to monitor originators and maintain high standards was undermined as competition shifted market power away from securitizers and toward originators. Although standards declined across the market, the largest and most powerful of the mortgage securitizers, the Government Sponsored Enterprises (“GSEs”), remained more successful than other mortgage securitizers at maintaining prudent underwriting. </div></div>


ie, not Fannie and not the lenders (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1924831)

eg8r
02-09-2012, 10:45 AM
OK, admit it or not, we know where you have always stood on this issue and we now see your flip flop.

eg8r

LWW
02-09-2012, 03:57 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">OK, admit it or not, we know where you have always stood on this issue and we now see your flip flop.

eg8r </div></div>

True ... he has stood wherever the regime tells him to stand.

Qtec
02-10-2012, 02:09 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: eg8r</div><div class="ubbcode-body">OK, admit it or not, we know where you have always stood on this issue and we now see your flip flop.

eg8r </div></div>

So, you accuse me of defending Fannie, I say <span style='font-size: 14pt'>I did and I still do</span> and you call that a flip flop.

Well done Einstein.

Q

LWW
02-10-2012, 03:59 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">So, you accuse me of defending Fannie, I say <span style='font-size: 14pt'>I did and I still do</span> and you call that a flip flop.

Q </div></div>

So what was the point you were making by starting this thread?

eg8r
02-10-2012, 10:09 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">So, you accuse me of defending Fannie, I say I did and I still do and you call that a flip flop.
</div></div>Do you know how stupid that statement was? Let me say this clearly for qtip...You always said Fannie/Freddie had nothing to do with this crisis and now you are showing they haves some blame. You have flip flopped pretty badly. This would have been so much easier if you were just a man and admitted you have been wrong all along.

eg8r &lt;~~~knows qtip will never man up.

LWW
02-10-2012, 06:12 PM
In his defense ... he is only repeating what he has been told his "OPINION" is.

It's far worse than a flip flop that you have witnessed here.

Due to the debilitating mental illness of doublethink, the Snoop believes that FANNIE/FREDDIE are both blood libel guilty and pure as the driven snow innocent ... at the same time.

His next move is entirely predictable ... to insist that he did neither while in the next breath repeating that he did both, and also believing fully that both situations are true and accurate.