Abigail Field | Dear Representative Issa: Questions for Your Fannie Backdoor Bailout Investigation

Dear Representative Issa: Questions for Your Fannie Backdoor Bailout Investigation

Dear Representative Issa:

Thank you for investigating Fannie Mae’s purchase of mortgage servicing rights from Bank of America. As I detail below much more thoroughly than I did in my Fortune.com piece that you cited in your letter, the $500 million purchase is a backdoor bailout until proven otherwise.

The Key Questions

Your letter asks good questions and makes pretty thorough document requests. However, I think you can expose the bailout nature of this deal simply by getting plain English, main street answers to these questions:

1) How much was BofA making in servicing fees on these loans, minus servicing costs? How does that relate to $500 million?

2) Fannie justified the deal in part as a way to reduce its losses by switching servicers. How much was Fannie losing because BofA was servicing the loans so badly?  How do those savings relate to $500 million?

3) A chunk of the loans were supposed to switch servicers in September. Has that happened? Who services the loans now? Will it be the same company or a different company that takes the rest of the loans? How confident is Fannie that the new servicer(s) will do a meaningfully better job than BofA so that the anticipated savings materialize? What evidence justifies that confidence?

4) How much did the new servicer(s) pay for the right to service the loans? Did Fannie provide the new servicer(s) financing for the deal? That is, how much money actually came out of the new servicer(s)’ pockets and ended up in Fannie’s coffers?

5) Did the new servicer(s) take the rights subject to any limitations? That is, did Fannie shift all the risk associated with the mortgage servicing rights to the new servicer?

6) How was BofA accounting for these rights? In general, how does BofA account for its servicing rights? How about the other big banks’ valuations?

You can check out the the rest here…

~

4clsoureFraud.org

Comments
9 Responses to “Abigail Field | Dear Representative Issa: Questions for Your Fannie Backdoor Bailout Investigation”
  1. P Nachman says:

    First of all, thank you for your excellent work and advocacy!
    I just wanted to call to your attention that there are many other servicers/custodians that act on behalf of Fannie Mae. All of these are probably actively pursuing foreclosures posing as the creditor when, in reality, they are merely the servicer for Fannie Mae.
    The link to the list for 2011 is here: https://www.efanniemae.com/is/doccustodians/pdf/fmadc2010.pdf.

    Also, there is something else that needs to be brought to Issa’s attention – it will mean more coming from you, I think. PNC, as a servicer for FM, sold my mortgage to FM. A FIOA request for information as to the true owner of my mortgage sent to FHFA and Fannie Me – specifically the MBS division, was rejected. FM claims that they are not a government entity and, as such, are not required to answer FIOAs and in any event the information that I requested is, in their words, “non public”. In the meantime, everytime either Fannie Mae or Freddie Mac buy or sell a home, they submit a waiver to the local county to exempt them from grantor/grantee taxes claiming that they are government entities. Isn’t that convenient! So which is it? I checked this with the clerk of the court, Chesterfield County VA.
    Do you know any AGs or local county attorneys who could use some extra funding? Who’s up for this “fundraiser” Fannie Mae and Freddie Mac owe each county in the US big time – at least since they went into US conservatorship in 2008! Either that, or they answer my FIOA!

    • lvent says:

      MERS stated clearly on their website, FANNIE MAE IS AN INVESTOR IN MY FAKE LOAN, NOT AN OWNER OF ANYTHING….ON FANNIE MAES WEBSITE THEY SAID THE OWN MY LOAN……THAT IS FRAUD….THEY ARE A GSE WHO BACKS THE LOANS WITH U.S. TAX PAYER DOLLARS AND AN OWNER OF THE LOANS, AN INVESTOR, AND SELLER OF INTEREST IN THE LOANS?..THAT IS AN UNCONSTITUTIONAL AND ILLEGAL CONFLICT OF INTEREST THAT THEY ARE GSE’S AND THEIR BIGGEST BONDHOLDER IS THE IMF………..HALF PRIVATE AND HALF PULIC= 100% ILLEGAL AND UNCONSTITUTIONAL….A SHAM AND A FRAUD…..THE GSE’S AND THE IMF…..INSTITUTED THIS PLAN TO OVERTHROW AMERICA!!!

    • lvent says:

      THE GSE’S DO NOT OWN OUR HOMES, THAT IS ALL A MIND GAME A SHAM AND A FRAUD……THEY WANT US TO “THINK” THEY OWN OUR HOMES……THESE HOMES WERE FULLY FUNDED AND PAID FOR BY ALL OF US, THE U.S. TAXPAYER…..AND THEY ARE STILL MAKING TONS OF MONEY ON THEM…DON’T BE FOOLED..EVEN THE DEFAULTED LOANS ARE STILL PUBLIC OPTIONS AND ARE ACTIVIELY BEING TRADED ON IN A GIANT GLOBAL TRUST……!

  2. housemanrob says:

    How good a job can a Servicer do on a loan that is fraudulent (virtually all of them) when the only way the servicer can really make any cash……..is by stealing yours!

    • lvent says:

      These politicians don’t give a damn about us, their homes are paid for….they don’t even have mortgages….they are all a bunch of fat cats who want to keep the ponzi scheme going for themselves and all of their criminal friends on WALL STREET and the overseas investors, who are our enemies….and hate America…

      • housemanrob says:

        …and I hate them, Vent….and I have a long fuse….if I feel like this….then how long before a less stable broken homeowner decides he is going to TAKE OUT!……a Banksters. It will not be long, I assure you!

      • housemanrob says:

        …if I was a filthy rich BLOOD SUCKING VAMPIRE BANKSTER….I would be looking for another country to hide in!

      • lvent says:

        Rob, CNN reported a car bomb in Michigan injured an attorney and his 2 sons…..there is going to be more and more of this….when the people start waking up and discover how badly we have all been screwed out of everything by this establishment of crooks..there will be vigilantes….I wouldn’t want to be any of these cowards and traitors……

      • housemanrob says:

        …..I think pretty soon…..we are going to find out who the cowards are on both sides….hope there is nobody left in D.C. left to fight us and f@#k The New World Order and the Illuminati, Free Masons, etc. We are going to root all of you hellgramites out from under your river rocks. We are coming for you…and you too….Ruppert Murdoch. Let’s see how long your media manipulation lasts now. Is your a@#h%^e puckering up yet?

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