Freddie Mac Fires Marshall C. Watson, but Fannie Mae Continues to Use Firm Because it’s too Expensive to Transfer the Files

 

Fannie Mae was told about foreclosure abuses by an investor as early as 2003. The concerns were backed up in a 2006 report commissioned by Fannie that found “foreclosure attorneys in Florida are routinely filing false pleadings and affidavits.”

“It is axiomatic that the practice is improper and should be stopped,” the 2006 report said. “Fannie Mae has not authorized this unlawful conduct.”

But, if it’s too expensive to fix…

Well, we all know how that turned out…

~

Fannie Mae sticking with fired Florida law firm

Federal mortgage backer Freddie Mac fired a Florida law firm this year for “foreclosure processing abuses,” but sister company Fannie Mae continues to use the firm because it’s too expensive to transfer files to new attorneys.

A Federal Housing Finance Agency Inspector General report released Tuesday criticized the two entities for, among other things, a lack of communication about problems within law firms used to take people’s homes.

But, even when Freddie Mac told Fannie Mae why it was firing the Florida firm, Fannie decided to retain the law firm’s services, noting that the cost of moving cases “would be substantial.”

According to the report, Fannie Mae is expecting a $5.5 million bill for transferring files from the Law Offices of David J. Stern to new attorneys. Both Fannie and Freddie fired the Plantation-based Stern firm in November.

The firm Freddie fired but Fannie retained handled 43 percent of Fannie Mae’s foreclosure cases in Florida, the report notes.

While the firm is not identified in the report, Freddie Mac cut ties with the Fort Lauderdale-based Law Offices of Marshall C. Watson in early March.

The Watson firm remains on Fannie Mae’s retained attorney network list.

“The Federal Housing Finance Agency does not have a formal policy or practice to apprise either enterprise of the other’s termination actions,” the report said. “Moreover, Freddie Mac has terminated law firms for poor performance, and Fannie Mae has retained the firms.”

The Watson firm did not respond to a request for comment Wednesday.

You can check out the rest here…

~

4closureFraud.org

Comments
6 Responses to “Freddie Mac Fires Marshall C. Watson, but Fannie Mae Continues to Use Firm Because it’s too Expensive to Transfer the Files”
  1. Katheryn says:

    Mike

    Where do you get the graphics! They make my day!

  2. Readdocs says:

    This brings back the subject of Fannie Mae firing Taylor,Bean,and Whitaker in 2000,
    and being hired by Freddie Mac and Ginnie Mae the same week they were fired by
    Fannie Mae. Fannie Mae knew TBW was committing fraud, and instead of filing
    a criminal complaint against the mortgage company, they quietly fired them.
    Was Freddie Mac and Ginnie Mae alerted to this problem?
    In 2002 TBW was put under fraud investigation, and allowed to keep doing
    business as usual until August of 2009. How many investors did they financially
    ruin, and how many borrowers are now paying on mortgages that possibly do not
    have clear titles at satisfaction of the note?

  3. Fred Grander says:

    Tell Chris we’re going to privately sue DeMarco on down. If we are homeless and unemployed, it’s time to go after the captains of the ship. Mutiny! Dugan, DeMarco, Timmy Geithner, Jamie Dimon. Johnson, Donilon, Mozillo etc etc

  4. Stanley Lutz says:

    Fannie Mae is beyond crooked, any other entity would have been raided by Federal Agents, guys like Johnson would be without a career.
    The press continues to treat the Complex of Fraud as if they are US Insitutions operating with the best interests of the Governed – nothing could be further from the truth!! They are proxies and agents of Wall Street’s tyranny.
    Fannie is keeping other lawfirms well paid, and well fed, as they commit fraud in every state in the USA.

  5. Pat says:

    The contact information for the FHFA, Fannie Mae’s conservator is below. Ask for Chris in the consumer department to voice your disgust.

    Federal Housing Finance Agency (FHFA)
    1700 G Street, NW
    4th Floor
    Washington, DC 20552

    Telephone: 202.414.3800
    Fax: 202.414.3823
    ConsumerHelp@FHFA.gov

Leave a Reply