Whistleblower Lawsuit: Fannie Mae Bungled HAMP Anti-Foreclosure Program – Caroline Herron v Fannie Mae et al Case 110-Cv-00943-Rmc

The Center for Public Integrity

Fannie Mae executives bungled their stewardship of the federal government’s massive foreclosure-prevention campaign, creating a bureaucratic muddle characterized by “mismanagement and gross waste of public funds,” according to a whistleblower lawsuit by a former Fannie Mae executive and consultant.

Caroline Herron, a former Fannie vice president who returned to the mortgage giant in 2009 as a high-level consultant, claims that the homeowner-relief effort was marred by delays, missteps and executives preoccupied with their institution’s short-term financial interests.

“It appeared that Fannie Mae officers were focused on maximizing incentive payments available to Fannie Mae under various federal programs – even if this meant wasting taxpayer money and delaying the implementation of high-priority Treasury programs,” she claims in the lawsuit.

Herron alleges that Fannie Mae officials terminated her $200-an-hour consulting work in January because she raised questions about how it was administering the federal government’s push to help homeowners avoid foreclosure, known as the Home Affordable Modification Program, or HAMP.

Continue reading here…

Check out the lawsuit below…




Caroline Herron v Fannie Mae et al Case 110-Cv-00943-Rmc
[scribd id=35479380 key=key-1ufn6vm4vxej6h9heen6 mode=list]

7 Responses to “Whistleblower Lawsuit: Fannie Mae Bungled HAMP Anti-Foreclosure Program – Caroline Herron v Fannie Mae et al Case 110-Cv-00943-Rmc”
  1. Didi says:

    Fannie Mae rides again! I guess the 3-ring circus of absolute power corrupts absolutely never ends among the ill-intent rich and powerful. This wolf does not even have to dress up in sheeps’ or Grandma’s clothing. Who in their “right mind” would trust Fannie Mae, not to speak of involving them in any federal programs where there is opportunity to enrich themselves? Oh that’s right, this is also about the game of scratching backs and the good old boys network. Is this not the same top fortune 500 company that was considered too big to fail; fined millions by the SEC for financial violations and illegal accounting practices; deceived its shareholders, employees and customers; bamboozled the Congressional banking committee; threatened its regulator and has tied up all of the Beltway (lawyers included) and politicians through campaign contributions to almost every US congressional rep and senator and more contributions to political causes and lobbying with its might & influence? I see Fannie Mae executives still get protection to unjustly profit from their history of & current misdeeds and lack of integrity. Shame,shame shame. God deliver us from this continuing saga of injustice and evil.

  2. Greg says:

    If you feel that you have been wronged by your lender either on the original loan you received, possibly by deceptive practices or by some sort of bait and switch tactic or you’ve been trying to get a modification and have been getting the run around for weeks, months or even years, you need to contact me. there IS an answer to your problems.
    We are currently litigating against BofA/Countrywide in a lawsuit that has been ongoing for over a year. We have also just filed mirror suits against Wells Fargo (Wachovia), Chase, IndyMac, GMAC and CitiGroup with many more being filed in the very near future.
    Many of you have tried negotiation and it just has not worked…now it’s time for litigation.
    Do yourself a favor and send me an email…you have nothing to lose and what you’ll gain is some peace of mind and your home. gregmoeller2005@yahoo.com

    • Katheryn says:

      I’m one of those classic cases. I am getting ready to get a forensic audit as I have to go it alone. I am in a state that I have found -0- attorneys wanting any part of this mess nor have I been able to connect with anyone on blogsites from my state. To be up front and honest with you, it would seem that even if you are lucky enough to prevail in a class action, the attorneys get the bucks and the homeowners get a couple thousand bucks wiht a “wow” we beat them. Again, I question the fairness. Please be assured that I mean no offense.

  3. The Center for Public Integrity is Bullshit. I sent them certified proof that the North Carolina government was participatory in foreclosure fraud, and they wouldn’t pursue it.

    Meet one of the KEY Players making foreclosure fraud happen regularly! Meet Jo Ann Caudle, (acting) Assistant Clerk of Superior Court for Forsyth County, NC. Here’s a report of her KNOWINGLY foreclosing when the Note was subpoenaed, and not produced at all.


  4. PJ says:

    The Edwards-PHH-Fannie connection is significant since the FHFA has most likely suponened PHH , one of the 64, not identified, as of yet, that sold privet label mortgages to Fannie… guess he is there sifting through the loan files as an employee of Fannie now on the taxpayers dime to cover the tracts for PHH , IMO , perhaps Ms. Herron was on to something, obvisiouly something Mr.Edwards did not like…

  5. These “financial terrorists” have been at it for hundreds of years… infiltrating our government, media, courts, society, etc. Since they couldn’t beat us on the field of battle they did the next best thing to cripple our country… and that was to supplant their financial system upon us.

    “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
    -Lord Acton

    “I care not what puppet is placed on the throne of England to rule the Empire, …The man that controls Britain’s money supply controls the British Empire. And I control the money supply.”
    -Nathan Mayer Rothschild

    “The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities states and nation. At the head is a small group of banking houses generally referred to as ‘international bankers.’ This little coterie… run our government for their own selfish ends. It operates under cover of a self-created screen…[and] seizes…our executive officers… legislative bodies… schools… courts… newspapers and every agency created for the public protection.”
    -John F. Hylan

    “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance.”
    -James Madison

    “The few who could understand the system will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.”
    -John Sherman

    So tell me, why is it that “We the People” have to borrow what should be “OUR” money and pay it back to these “demolition experts” with interest?

    Source: http://quotes.liberty-tree.ca/quotes_about/rothschild

  6. PJ says:

    Hummm. Terry Edward’s of infamous PHH Mortgage Corporation fame… (now at Fannie), and directly linked to this persons firing…

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