Foreclosure Mills Pocketed $50M From Fannie, Freddie

— By Andy Kroll

In late November, as the Foreclosure-gate scandal spread throughout the country, Rep. Randy Neugebauer (R-Tex.) demanded to know how much money Fannie Mae and Freddie Mac, the wounded quasi-government housing corporations, had paid to multiple sleazy law firms at the heart of the foreclosure crisis. One of the firms Neugebauer had in his crosshairs, the Law Offices of David J. Stern in southeastern Florida, had been the subject of a long Mother Jones investigation in August, which also detailed how Fannie and Freddie gave rise to this unscrupulous and greedy breed of law firms. This week Neugebauer got his response: according to data reviewed by HousingWire, the firms in question received nearly $50 million in legal fees from Fannie and Freddie.

Most of that money, $46 million, came from Freddie Mac, the smaller of the two corporations; Fannie paid the controversial firms $2 million. That’s quite a hefty sum for Florida’s largest “foreclosure mills,” as they’re known. But the coziness between Fannie and Freddie and the foreclosure mills doesn’t stop there. After all, foreclosure mills wouldn’t exist were it not for the creation of the two government corporations.

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9 Responses to “Foreclosure Mills Pocketed $50M From Fannie, Freddie”
  1. Slightly Injured says:

    There are others besides Stern who routinely commit felonies, which are called “technicalities” by the courts.
    I remain cynical, while the Press illuminates the individual tragedies about the borrowers, they refuse to implicate the criminals. They cannot, and will not critize the collusion of Wall Street and our Federal Government that allowed this debacle in the first place. Friends, I hate to say it, but this is but more evidence you do not live in a Democracy at all, you live in a police state.

  2. Flex says:

    Hey! America,
    Have you seen what is happening in Egypt? Who would have known that protesters are gearing up a massive reunion tomorrow while the government is getting ready to fight them? This is amazing to watch because who knows, soon will be us on the streets when we are finally ready not to take it anymore.
    I had been reading many blogs and written many comments for the last three years how we should get organize and protest this madness of slavery from the Fraudsters.
    If we continue taking it until there is not a home less for the bank to take it illegally, might as well give the government all the homes through the wonderful investment of the government, the GSE (Fannie Mae and Freddie Mac) the master puppets who is running this country. Who would have thought that Fannie Mae and Freddie Mac after hiding all their wrong doing with MERS, with FAHA , FDIC, FBI, and who knows how many others government agencies, they will be the ones to tell the financial industry what to do and pass laws that they are in not position to teach, supervise, or carry on since they are the biggest crooks behind this whole ordeal. The perfect example is being associated and forming MERS that actually will be named the illegal organization who took America by controlling 65 million homeowners loans by pretending being the nominee and electronically registering the titles or transfer, assignment of titles, but without transferring any notes to the Trustee trust. When I share the knowledge with intelligent people about what is happening lately with the new discovering of the PSA and the Trustee trust through Securitization, they get blown away.
    I just can not wait to see one big law suit won by the biggest Insurance Company in New York against Chase to set the statue and then the rest of insurance companies and investors go after the cramps of what is left of the banksters. Come on! Investors, it is about time you guys get together with the homeowners and fight the biggest Ponzi Scheme in the history of the world. Don’t you want to get your money back? How about all the Police Officers, Fire Fighters, Teachers, and Judges’ Pension Plans, where billions of dollars were lost overnight? Are you guys going to seat there and pray for a Revolution? or Are you going to fight and find out what is going on? Let me finish with a tip, please go to U-tube and listen to these two songs, I promise you will like them.

    God Bless America and God Bless each one of us! Don’t forget to pray tonight! Cheers!

  3. housemanrob says:


  4. PJ says:

    Well Wonton90 you best find out if your on the “creditors list” filed with he BK court in FL! Why would you take the word of a puppet at the firm? Stern is heading down the final stretch to the cut off date of being de-listed on the NYSE, thats when his real troubles begin and he starts squealing like the little piggy that he is

  5. l vent says:

    The courts should FORCE David Stern and other fraudclosure mills to give the money back that they STOLE from the people VIA THE GSE FANNIE/FREDDIE along with the HOMES THEY STOLE by FRAUDCLOSURE. Our Government backs this kind of garbage with tax-payer money? FANNIE/FREDDIE ARE THROWING PEOPLE OUT OF THEIR HOMES and STEALING THE PEOPLE’S HOMES WITH THE PEOPLE’S MONEY VIA THE GOVERNMENT? Time for some heads to roll.

    • wonton90 says:

      If it were you or I we would be in JAIL
      it goes too deep for anyone to open this can of worms
      we as people cannot sit still for this crap
      the government is just taking things away from us little by little you’ll see if your EYES are WIDE
      this is not going to be hanlded with integrity it is now a blame game for alittle while yesterday it
      was Wall St’s turn for the blame
      this stuff happened on a huge level it affected ALL of us I as a service provider, homeowners, everyone
      and this STERN punk is still driving his Bugatti how sick is that
      this didn’t affect me until now I really didn’t know how sick that organization was and still is
      when it hits my pocket I scream this punk needs to pay the other firms I worked with them they are not EVEN on his level he is ruthless all the good staff are out of there it is just peons working there and
      everytime that Controller doesn’t get on the phone I cannot believe it she is being paid each week
      pay your bills first then pay other people that was what I was taught if I didn’t pay my bills I wouldn’t
      get service yet he is still there and No one is doing anything WHY
      The baboon that took his place running DJSP is a moron and this is what Fannie and Freddie Mac paid 50 million too> have you seen the employees that work there ? If you gave them a test they would fail
      and this is who is doing paperwork and not releasing checks this is America

    • well said but hey i don’t see nothing happening or ways to make the Gov Freddie and Fannie accountable

  6. wonton90 says:

    And they have NOT PAID my invoices for labor that was used to process those FORECLOSURES
    the Controller Esther Surujon from David J Stern’s office told me they are in bankruptcy there
    are no proceedings filed they are just Dodging their bills and this is a VERY ruthless Woman
    she does not take my calls or acknowledge the invoices can I FORECLOSE on this firm?
    I know some of the Foreclosures are legitimate and whatever the story they tell themselves to not
    pay their vendors why should we be compassionate to them when they were not compassionate to anyone
    not their employees, homeowners and now they are putting small business out of business
    Just because David J Stern THOUGHT he could conquer the world and lost does not give him access to take others with him we worked for this money …..maybe Fannie or Freddie will pay me How do they get away with this pay your invoices you creep

  7. l vent says:

    And where did that money come from? The tax-payers. More DEBT CREATION by the GOVERNMENT to IMPOSE ON ALL OF US to cover-up for the BIGGEST PONZI SCHEME IN HISTORY!! Death to the Oligarchy!!!!!

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