LIES | Fannie Mae Promises to Keep Families in Homes, but Instead Pressures Banks to Foreclose

Fannie Mae promises to keep families in homes, but instead pressures banks to foreclose

In early December, a senior executive at Fannie Mae assured members of the Senate Banking Committee in Washington that the mortgage giant was doing everything possible to address the foreclosure crisis.

“Preventing foreclosures is a top priority for Fannie Mae,” Terence Edwards, an executive vice president, told the panel. “Foreclosures hurt families and destabilize communities.”

But confidential documents obtained by the Free Press show that Fannie Mae has pushed an agenda at odds with those public assurances.

The records cover Fannie Mae’s foreclosure decisions on more than 2,300 properties, a snapshot from among the millions of mortgages Fannie handles nationally. The documents show Fannie Mae has told banks to foreclose on some delinquent homeowners — those more than a year behind — even as the banks were trying to help borrowers save their houses, a violation of Fannie’s own policy.

Key documents

Last summer, Fannie Mae executives decided the mortgage giant was “suffering delays in the processing of its foreclosures.”

These documents reveal how Fannie Mae addressed those delays, including a letter to GMAC Mortgage spelling out its new policies to assess compensatory fees and require banks to get its written permission to delay foreclosure sales on loans more than 12 months in arrears. The records also include letters to six lenders setting performance goals for the third quarter of 2010.

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12 Responses to “LIES | Fannie Mae Promises to Keep Families in Homes, but Instead Pressures Banks to Foreclose”
  1. lvent says:

    Truth be told, there is insurmountable proof of MASSIVE AND PERNICIOUS MORTGAGE FRAUD and yet, there is still no moratorium on fraudclosures……Wake up America,almost ALL of the politicians, their minions and their cohorts have EGG ALL OVER THEIR FACES…!!!! Almost all of them are working for or are a member of the New World Order….The ruling Global elite…THE PLUTOCRACY that is using the OLIGARCHY THAT THEY THEMSELVES OWN TO RELENTLESSLY FINANCIALLY TERRORIZE THE AMERICAN PEOPLE,,,AND THE U.S. GOVERNMENT IS ALLOWING THESE NAZIS, THE FOURTH REICH TO DO THIS,.This is a Hitler Plan, .there is no other explanation…why there are still ILLEGAL fraudclosures,…throw them all out America……..!!!!!

  2. Help wanted in South Mpnterey County, California! My best people were given cash for keys, home now vacant, immediate cost, refund $2000 deposit, poa $1650. on first, have asked for adjustment on second, which I have in writing on modification of adj. for pick a pay. loan?which required 20% down, that with perfect payments of two yrs. would adjust, 3 yr perfect payments, so refusal, just offered foreclosure, after putting in 15,000 in yard, 2000 in additional upgrades, and they move out my best people behind my back while having surgery due to fall, On fixed income, senior, so that is what they mean by foreclosure prevention, you are too lose everything, they are making these decisions for you, NOBODY CARES, HAVE CONTACTED ALL THAT MATTERS, EVEN IF THEY CONTACT THE LENDER IT IS ALL ABOUT THEM, THEY GIVE YOU LIP SERVICE, AND MOST LIKELY ON FIXED INCOME WITH CURRENT PAYMENTS, YOU WILL LOSE EVERYTHING! ! I have even asked numerous occasions for an audit, that was a good idea, they asked the lender to audit me. Please any suggestions most appreciated, doing this with left hand finger tapping!

  3. kravitz says:

    Some time back it was surmised the only way the banks would feel confident in the less than legal techniques is if they had the ‘blessing’ of HUD, Fannie & Freddie.

    No one should be shocked that the truth is being revealed.

  4. Hell No, No More Bail-OUTS says:

    And yet another poster here has pointed out a GAO report that shows dearest ‘treasury timmy g’ GAVE the banksters a total of $16 trillion that was NOT part of TARP.

    Then we also have auntie fannie mae BUYING servicing rights on loans from Shank America (when normally auntie would be SELLING those rights on loans owned by FANNIE, not BUYING). Of course it was a back-door method of propping up Shank America for dear little pal Brian Moynihan.

    I read a reference to those same servicing rights that auntie bought. Supposedly they were transferred already to another firm. So, if that could be done so readily, why involve auntie unless sweetie Brian got more from sucking up to auntie than he would have gotten from the sale elsewhere?. Auntie probably paid more to her pet than she got from the other commercial company.

  5. Mickey French says:

    We need more whistle blower lawsuits.

    • lvent says:

      Professor William K. Black was interviewed on the latest Keiser Report..Professor Black describes the society we are living in today as criminogenic as a direct result of no criminal prosecutions for the banking elite, their minions and cohorts… Prof. Black stated that the Clinton administration lifted all restrictions on Wall Street Credit Default Swaps and the like…and the BANKS ARE WHO PUT THE LIAR IN THE LIARS LOANS…..OVER 90% OF THE MORTGAGE LOANS CREATED AFTER 2006 WERE LIARS LOANS….SUCH AS STATED INCOME ALTA A LOANS AND THE LIKE..The fact that no criminal prosecutions by the DOJ has lead to bank plundering and looting and rampant white collar street crime…Prof. Black suggests we demand Eric Holder resign and be replaced by a real criminal prosecutor, I suggest Elliot Spitzer…Prof Black stated that President Obama made a speech to the banksters after he was elected stating he was the only thing standing between them and the pitchforks….pretty telling…..sounds to me like Obama is the problem and Holder is just an accessory which makes him no less guilty but I believe Mr. Holder is only symptomatic of a much larger problem of rampant treason by traitors within our own Government and judiciary……They really need to be routed out and thrown out by the American people. This video clip explains how ZERO fraudsters have been sent to the hooskow in a 6 trillion dollar intergalactic banking meltdown…..

  6. Ron Moss says:

    Tail wags Dog. Do you feel like barking

    • Fannie Mae has a long history of being two-faced in their dealings with the public. There is a great deal of difference between not telling all your business (nobody does and that is prudent) and deliberately taking a contrived public position which makes you appear to be on the side of the consumer AND QUIETLY, AND CONTINUALLY, WORKING BEHIND THE SCENES IN A WAY WHICH WILL HARM THOSE SAME CONSUMERS.

      Back in the hey day of seller funded down payment assistance from organizations like Nehemiah , Partners in Charities and Ameridream there was a segment of the population which thought these loans were BAD for the consumers and the neighborhoods where they were used. I was living in Indianapolis and very involved in trying to point out that such programs:
      a. tricked folks into thinking they actually qualified for the homes they were building
      b. moved folks into home ownership who were not prepared to be able to maintain it
      c. accomplished this by inflating the value of the home
      d. used an assortment of predatory lending practices to accomplish this

      Equally important, I (and a few others) took the strong position that:
      1. this could deplete the insurance fund of FHA when these loans defaulted (as they were predestined
      to do)
      2. That neighborhoods would be negatively impacted
      3. That consumers would be damaged in the long run

      Fannie Mae went out of their way to advertise and distance themselves from these kinds of loans, saying there were not consistent with the “American Dream of home ownership”. They emphatically stated they would not accept such loans from their lending partners, for this reason.

      Imagine my consternation when more and more of the REO properties I was receiving as a Fannie Mae Broker were in the same neighborhoods which had been sold primarily as Nehemiah seller funded subdivisions. It was confusing.

      How can a house go from being a HUD insured, Nehemiah funded house to a Fannie Mae repo?

      Well, the answer I discovered was that Fannie was QUIETLY buying as many of these loans as they could, UNDER THE TABLE, away from any scrutiny about the QUALITY of the loan so they could use the fact that these loans:

      a. had more lower income buyers in the pot
      b. had more people of color as the owners


      c. then they got bigger bonuses
      d. but they kept their nose clean by not having anyone know that they had anything to do with these
      toxic loans
      It is (WAS) almost totally about making big profits for it’s stock holders. Look where that led.

      By 2002 I had had enough of the underhanded tactics and other things I found out while working with them and we mutually decided to part company. I could write a book on the two-faced practices of this institution which is suppose to be about housing Americans. Maybe I will one of these days.

      Former Fannie Mae Broker

      • Bobbi Swann says:

        You are so right, Mildred and this is all part of the Ponzi Scheme. Even Ron Paul talks about the fraud and corruption in the gov’t and the Ponzi Scheme which he references himself. I remember all of those programs you mentioned. Too many of the real estate people and the mortgage brokerage sector was all too greedy to join in on those programs for the almighty dollar but all the while it was creating the ‘bubble’ with the inflated pricing, manipulation of the appraisals, etc. I remember one such deal back in 2004 where I told the agent that I did not believe the contract price could be justified with an appraisal based on current comps. She emphatically told me ‘well, if your appraiser cannot hit the numbers then use mine. He does just what I tell him to do’. That prompted me to refer the customer to another broker or lender but not before I warned them of the consequences of inflated pricing. The client ignored my advice, purchased the home via another lender/broker and in 2006 called me to help them with a refi. I could not help them because by that time they were ‘underwater’. It is so sad but those programs were like the plague and doomed to kill the market at a later date…..well, here we are!

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