Category Archives: Robo Signers

Foreclosure watch: A bombshell on mortgage fraud and Fannie Mae

Brent Hunsberger who writes the blog It’s Only Money at The Oregonian points out that as early as 2003 there were warnings flares going up at Fannie Mae that were ignored, but that foreshadowed the muck we find ourselves in today.

This weekend’s excellent story comes from New York Times writer Gretchen Morganstern. Its title: A Mortgage Tornado Warning, Unheeded.

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).

“From my own personal experience and 20 years of research and investigation, nothing

“And you will know the truth, and the truth will set you free.” John 8:32

On Good Friday, thought an appropriate biblical reference was in order — John 8:32, “And you will know the truth, and the truth will set you free.”

Today, like every day, we are muddling through many foreclosure files rife with out right lies, misleading affidavits and phony MERS assignments of mortgage.