OCJ CASE NO. 5595 | Confidential Report to Fannie Mae Regarding Shareholder Complaints of Foreclosure Fraud by Mr. Nye Lavalle

Holy crap. Talk about a bombshell!

Read the report below. There can be NO settlement with this now out in the open!

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Confidential Report to Fannie Mae Regarding Shareholder Complaint of by Mr. Nye Lavalle

EXECUTIVE SUMMARY

The Office of Corporate Justice has retained Baker & Hostetler LLP to conduct an independent investigation of concerns expressed by Mr. Nye Lavalle, a Fannie Mae shareholder, about several Fannie Mae business practices in connection with single-family mortgages. 1 Mr. Lavalle accuses Fannie Mae of “aiding, abetting and sanctioning … predatory lending and servicing schemes,” as well as committing accounting and securities fraud, and racketeering violations. He views Fannie Mae as responsible for damage inflicted on single-family borrowers by unscrupulous lenders and servicers because Fannie Mae approves lenders and servicers, maintains servicer profiles and ratings, approves mortgage document terms and servicing requirements, and benefits from the income stream created by wrongdoing. He fears Fannie Mae’s alleged failures could result in both civil and criminal liability that would affect shareholder value.

Through a series of communications to members of the Board of Directors and others starting in December 2003, Mr. Lavalle called for an independent investigation of his allegations? The Board of Directors decided to conduct an internal review of these concerns. On September 12,2005, the Office of Corporate Justice retained Baker & Hostetler LLP.

Mr. Lavalle began investigating the mortgage industry after his parents, Anthony and Matilde L. Pew, had a dispute with mortgage servicer EMC Mortgage Corporation (“EMC”), a subsidiary of Bear Stearns Companies (“Bear Stearns,,).3 EMC ultimately foreclosed on the Pews’ property, even though, according to Mr. Lavalle, his family is wealthy and made repeated efforts to repay the loan.4 The dispute motivated Mr. Lavalle to investigate and publicize his allegations that EMC engaged in predatory servicing practices, which has resulted in several lawsuits between Bear Stearns and Mr. Lavalle.5 Mr. Lavalle then broadened his focus to include the single-family mortgage industry as a whole.

Mr. Lavalle considers himself a gadfly of the mortgage industry. He claims to have been investigating, analyzing and exposing mortgage fraud, predatory lending and servicing, and securitization schemes since 1993.6 He has a website that details his complaints, and has posted information on several other sites.7 He claims to have spent more than 20,000 hours and nearly $500,000 investigating predatory lending and servicing.8 He reports that he is a consultant to plaintiff lawyers who sue lenders and servicers and to homeowners.

Mr. Lavalle’s view is that since Fannie Mae is such an important force in the mortgage industry, it has both the responsibility and means to end abusive lending and servicing practices. Mr. Lavalle’s view is that Fannie Mae directs the conduct of servicers from afar. In an e-mail ofFebruary21.2006.Mr. Lavalle expresses his frustration, saying:

I hate to keep using the analogies that you don’t like but it really is like a Mafia operation. The Godfather [Fannie Mae] says we got a problem, “take care of it” and the lieutenant [“the servicer”] orders the hit [foreclosure] and hires the hitman [the USFN or other lawyer to foreclose].

The hit man and lieutenant don’t want the Godfather implicated so they create layers of deniability [a typical CIA, white house, legal and political maneuver] to conceal who the real parties in interest are and who had knowledge of and ordered the hit.

While Mr. Lavalle is partial to extreme analogies that undermine his credibility, he has become knowledgeable about the mortgage industry. He has identified significant issues but, in our view, does not always analyze them correctly. In proposing solutions, he generally undervalues the benefits to homeowners of efficient mortgage markets operated at low costs and overstates the needs of borrowers to have information about the status of their loans in the secondary markets for mortgages. Fannie Mae has already identified and is addressing many of the same issues. This report details several areas where Fannie Mae faces legal and business issues that remain to be addressed. Mr. Lavalle also claims that as a result of this work, he and his family have been harassed. He expresses considerable anger when he attributes these attacks to Fannie Mae. An investigation of his personal retaliation claim is in progress; to date Mr. Lavalle has identified no direct conduct by Fannie Mae that he considers harassing.

We have reviewed more than 1,500 pages of documents provided by Mr. Lavalle to Fannie Mae or us directly and had 17 conversations with him. We have identified six general areas of his concerns: (1) foreclosure policies and procedures, (2) transparency, (3) protection of promissory notes, (4) predatory servicing, (5) fraud detection and reporting, and (6) accounting and securities issues. Within each area, Mr. Lavalle identifies multiple issues that are detailed in this report. In investigating these concerns, we have collected documents from Mr. Lavalle, Fannie Mae and public sources, reviewed extensively eFannie.com, and interviewed at least 30 Fannie Mae employees. The company has fully cooperated in our investigation.

In reviewing Mr. Lavalle’s concerns as a shareholder, we have told Mr. Lavalle that the proper scope of our investigation is to determine whether he has identified wrongdoing hy Fannie Mae officials or financial risks of sufficient magnitude to affect materially Fannie Mae’s financial statements. We cannot resolve every case of an alleged mishandled mortgage.

Full report below…

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4closureFraud.org

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Confidential Report to Fannie Mae Regarding Shareholder Complaint of by Mr. Nye Lavalle

[scribd id=80495799 key=key-jyy5l0vwtaprbc7i7rr mode=list]

Comments
26 Responses to “OCJ CASE NO. 5595 | Confidential Report to Fannie Mae Regarding Shareholder Complaints of Foreclosure Fraud by Mr. Nye Lavalle”
  1. Abby in CA says:

    Pay attention here. Nye’s report is from 2006. We are 5 1/2 years later. What was done since 2006?
    NADA

    I don’t think this report will have much of an impact now. It is relegated to ‘I told you so’ status.

    Don’t get me wrong, I believe in Nye, but the report was from 2006.

  2. Ali says:

    SO WHO HAS MORE CREDIBILITY? FOX NEWS OR MR. LAVELLE? WE know the anwer to that.

  3. Ali says:

    One more thing, they (Fox) is so stupid they would never have Mr. Lavelle or Pro. Bill Black on. You could bet the ranch on that, if it hasn’t been foreclosed on.

  4. Ali says:

    I think people are embarressed or ashamed. They have been called deadbeats and other underserved names.The Collection calls are indimidating enough. I can take um, thats only cuz I’m from Chicago and not much scares me anymore and I don’t give a flying fuck what oither people think of me. Not all but most. Those yuppie assholes from Fox news are just so perfect. Fox is the worst one. Instead of releasing the truth they still insist this is all over “Robo-signing”. Fair and Balanced my ass. Even the Judge had savory words for “deatbeats” who don’t pay their mortgage. I am done with Fox and will get my news elsewhere, I hope everyone else does> That Charlie Gasperperino is a real walking dick!!!

  5. Debt Slave says:

    “While Mr. Lavalle is partial to extreme analogies that undermine his credibility”
    Oh really? Throwing families on the street doesn’t undermine credibility?

  6. Fury says:

    “We cannot resolve every case of an alleged mishandled mortgage.”

    how pathetic is that?
    if there is no commitment to stopping and punishing crime, what is the point in even having laws?

    if you have suffered from the crime of an illegal foreclosure, that is the one crime you want solved.

    • lvent says:

      Right on Fury..THE COURTS ARE WELL SETTLED THAT ANY ACT OF FRAUD IN A LEGAL CONTRACT NULLIFIES THE LEGAL CONTRACT…..THAT FACT IS PRECISELY WHY NATIONWIDE LOAN RECISSIONS AND CLEAR TITLE TO THE HOME AND BUSINESS OWNERS are the only LEGAL RESOLUTION to the ORIGINATION FRAUD THAT IS IN EVERY SINGLE MORTGAGE…WHICH NULLIFIES EVERY MORTGAGE…There is NO LEGAL OR MONETARY FIX FOR $700 TRILLION IN COLLATERAL MORTGAGE FRAUD…THEY SHOULD BE IN PRISON….! THE MASS DECEPTION…WAS THE ORIGINATION FRAUD….WE AGREED THEY COULD SELL THE ENTIRE LOAN..TO ANOTHER BANK/TRUST….WE DID NOT AGREE TO WHAT THEY ACTUALLY DID…THEY NEVER SOLD THE LOANS….JUST OVERSOLD INTERESTS IN THE NOTES…500 -600 TIMES PER NOTE…..THE INTERESTS THEY SOLD WERE IN THE MONEY FLOW WHICH WAS THE FRAUDULENTLY INDUCED MORTGAGE PAYMENT, NOT OWNERSHIP OF OUR HOMES…BECA– USE THEY COULDNT LEGALLY SELL OWNERSHIP OF THE LOANS BECA– USE THEY NEVER LENT US ANY $$$$..THE PROOF OF THE ORIGINATION FRAUD IS NO RELEASE OR ASSIGNMENT RECORDED…THE BANKS ARE RACKETEERING IN FRAUDCLOSURE BEFORE OR AFTER FILING A FORECLOSURE AFTER LOAN FLIPPING WITH THIRD PARTY DEBT COLLECTORS TO COLLECT INSURANCE MONEY AND HOMES AND BUSINESSES THEY DONT OWN..BECA– USE THEY DONT HAVE THE CHAIN TO THE ORIGINAL MORTGAGES AND NOTES….SERVICERS ARE NOT BANKS, THEY CANT LEND…SAME WITH MERS…IT IS ALL A SCAM TO TRY AND COVER UP FOR HUNDREDS OF TRILLIONS IN MORTGAGE FRAUD AND ILL GOTTEN GAINS…..THEY MUST RESCIND…THE MORTGAGE CONTRACTS ARE A NULLITY….THERE IS NO FIX…THEY MUST GIVE BACK THE MILLIONS OF STOLEN HOMES AND BUSINESSES!!!! THROW THE ARROGANT BITCHES IN PRISON!!!

  7. lvent says:

    When the band plays Hail to the Chief….they are really hailing their leader. SATAN….the scumbags…I always thought when we took communion …..at mass it was weird that we were eating the body of Christ and drinking the blood of Christ…symbolic sacrifice…speaking of weird….anyone see the get up on madonna at the super bowl…???.weird bitch..ALL DRESSED IN BLACK….KABALLAH WITCH!!! just like all of the politicians…their minions and cohorts. as well as..the so called moneyed elite are all weird bitches……Satan worshipping WITCHES…money is their replacement for God..and they lie and deceive us onto being their human sacrifice. F**K THEM and F**CK THAT!! REJECT THEM!!!!!

  8. foreclosureweary says:

    I spoke to a Desert Storm vet yesterday who told me he witnessed the US troops starting the fires in the Kuwait oil tanks. Not news to some of you, but showed me that many vets know what’s going on because they have experienced the lies and deceit. Years ago I met a vet who said he was ordered to protect CIA as he guarded the drug trade our government was involved in Viet Nam. Wouldn’t that be a great book–collecting the lies and deceit of our government by the vets own stories!

    an old sayin: Yes, the truth shall set us free! But first it will piss you off!

    Let’s hope this Fannie Mae story will be a game shifter–

    • lvent says:

      foreclosureweary…The American people are waking up to the lies…that is their biggest fear…people who get it..! They never thought they would get caught but if they did they have a plan for that to…recycle the fraud until the debt bomb explodes and then usher in their fix for Capitalism that they caused to fail with a Global Vatican/Rothschild Gold Standard…Global Indentured Servitude to the massive fraud of their perps…$1.2 QUADRILLION IN DERIVATIVES FRAUD UNSUSTAINABLE DEBT…DEBT THAT CAN NEVER BE REPAID…WE MUST REJECT THEIR EVIL FIXES FOR MASSIVE FRAUD…DEMAND OUR OWN CURRENCY ..U.S. BANK NOTES BACKED BY OUR OWN NATURAL RESOURCE REVENUES…STATE BANKS…THROW OUT THE FED AND THE POLITICAL TRAITORS TO AMERICA…THAT IS THE ONLY WAY FOR NATIONAL SOVEREIGNTY, THE US..CONSTITUTION AND FREEDOM TO PREVAIL…! GOD BLESS AMERICA!!! THE PEOPLE MUST THROW THESE GLOBALIST TRAITORS OUT OF AMERICA!!!

      • lvent says:

        BEWARE THE MONEY CHANGERS…THEY MONETIZE THE DEBT OF THEIR PERPS IN THE FINANCIAL INDUSTRY!!…THEY ARE THE FEDERAL RESERVE/WORLD BANK/VATICAN/ROTHSCHILD NEW WORLD ORDER!!! THROW THEM OUT AMERICA!!

      • lvent says:

        Remember folks….if they are not a bank…THEY CANNOT OWN YOUR LOAN…IF THERE IS AN …UNINDORSED NOTE AND AN ASSIGNMENT…OR AN ALLONGE THAT SECOND ENTITY ALSO STANDS IN THE SHOES OF THE ORIGINATOR….THEY HAVE NO LEGAL STANDING IF THEY CANT PRODUCE THE ORIGINAL DOCS….THE CHAIN TO THE MORTGAGE AND NOTE… AND THEREFORE CANT LEGALLY TAKE YOUR HOME OR BUSINESS..STOP THE FRAUDCLOSURES!!!

  9. indio007 says:

    Page 139 has a confession that they are swapping mortgages in and out of pools by “reclassifying them as portfolio mortgages”

    I knew it! They are retroactively adding and subtracting mortgages from MBS pools.

    I also think there is a secondary market for defaulted mortgages that they are using to backfill the trusts as well.
    This shit is going to blow wide open.

    • lvent says:

      Indioo7…..I have proof in my public recordings that they are buying, selling and trading on paid off mortgages….!!! I reported that fact to the MORTGAGE FRAUD DEPT at THE COOK COUNTY RECORDER OF DEEDS ….STILL HAVENT HEARD BACK ON THEIR INVESTIGATION….SURPRISE!!!! There is a cross collat…they cross collateralized my commercial property with my homestead property…unknown to me but…get this…when we refied the commercial in 08..The originator…Amcore Bank who is now a failed Bank….the largest bank failure in Illinois history…did not release the CROSS…..it still shows up on my re ordings…BUT, I HAVE THE STAMPED PAID “ORIGINAL NOTE”…UNINDORSED…..NO ASSIGNMENT EVER RECORDED….AND THEY NEVER SENT ME THE STAMPED PAID MORTGAGE…..! THEY ARE SNEAKY CRIMINALS…I AGREE……THIS IS GOING TO EXPLODE!!!! THAT $700 trillion in derivatives mortgage fraud they have hidden in their black hole is a ticking time bomb…..they are recycling massive fraud in many ways including the refis, loan mods and write downs….tick….tick….tick…..!!!!

      • lvent says:

        The masses don’t have clue…what these dirty bastards really did or how dangerous they really are with their $1.2 QUADRILLION in derivatives fraud….The massive debt fraud of this DEBT CARTEL IS TRULY UNSUSTAINABLE…IT CAN NEVER BE REPAID…!!!!IF THE MASSES ONLY NEW THE EVIL PLAN…THIS IS ANOTHER MONEYED ELITE HITLER PLAN…NO ONE IS SAFE FROM THE DEBT CARTEL AS LONG AS THEY EXIST VIA THE FED……THEY FULLY INTEND TO BANKRUPT THIS COUNTRY AND USHER IN THEIR TOTALITARIAN FIX…FOR WHAT THEY WILL CALL THE FAILURE OF CAPITALISM….A BIG LIE…THEY CA– USED IT TO FAIL….INTENTIONALLY…..!!! BEWARE THE FIXES FOR MASSIVE FRAUD….THE GLOBAL VATICAN/JESUIT GOLD STANDARD…THE MARK OF THE BEAST…GLOBAL INDENTURED SERVITUDE…NO SOVEREIGN NATIONS….NO OWNERSHIP OF ANYTHING BUT THE DEBT OF THE PERPS OF THE MONEYED ELITE!

      • lvent says:

        I also have PROOF..they are swapping bad notes…In my commercial property they “sold” the loan after the foreclosure lis pends was filed…to a third party debt collector who is registered with the IDFPR as a DEBT COLLECTION AGENCY…NOT A BANK…they sent me a letter while in litigation that they own our loan and the loan is now in a REMIC TRUST SERIES 2010-12…AND U.S. BANK IS THE TRUSTEE…There were 4 ASSIGNMENTS filed at the recorders office after the foreclosure lis pends was filed… 2 with out of state notarizions…the notary is not a registered notary in my state, nor could she be because FLORIDA is not a bordering state of Illinois…..the clerk told me..they cant do that…I knew that…The receiver for the property told us the Originator, the bank and the servicer swapped bad notes because they did not have the original note..I also reported all of this fraud to the COOK COUNTY RECORDER OF DEEDS MORTGAGE FRAUD DEPT..that was well over a month ago…still waiting to hear back from them….LOAN FLIPPING IS A PREDICATE ACT PROSECTUABLE UNDER RICO…STOP THE FRAUDCLOSURES!!!

      • lvent says:

        Now the GREEDY BASTARDS…..AKA…the moneyed elite don’t even want their manufactured debt slaves to to own any wealth….JUST DEBT…NO HOMES…..no pensions….no private health insurance…no unions to protect fair pay….no jobs that pay enough to ever get ahead of their game…!!! JUST THE MANUFACTURED DEBT OF THEIR PERPS IN THE FINANCIAL INDUSTRY…..THAT THEY OWN…THROW OUT THE FED…ISSUE OUR OWN CURRENCY BACKED BY our own natural resource revenues…STATE BANKS…THROW THE TRAITORS OUT ….!!!!

    • lvent says:

      THROW OUT THE FED…THROW OUT THE REAL BANKERS, THE REAL LAWYERS AND THE REAL COPS..AKA CONgress!

      • lvent says:

        It is CONgress who has the whole game rigged in their favor and in the favor of the moneyed elite! THEY ARE SNEAKY LIARS AND DECEIVERS…WHEN OBAMA SPEAKS…IT IS REALLY CONgress speaking.OBAMA IS ALSO A MEMBER OF THEIR BIG CLUB…HE IS A PRINCE HALL FREE MASON…AND A MEMBER OF THE U.N…CONgress are the real bankers, the real lawyers and the real cops….they are. ALL Traitors…! Eliot Spitzer for President 2012!

  10. dRp says:

    “Borrowers do not have the legal right or an identifiable interest in knowing the current owners of their mortgages or in the complex transactions that underlie secondary mortgage markets”

    REALLY

    15 USC 1692g
    “… send the consumer a written notice containing—
    (1) the amount of the debt;
    (2) the name of the creditor to whom the debt is owed; …”

    There might be some good information here, but it certainly appear that homeowners defending their homes are not aligned with the maligned investors!@

  11. Why does talking about the mafia make you uncredible? Does no one believe their is a mafia, or has the mafia done such a good job using hiding, they have trained the public if you talk mafia you are crazy? Like they have stigmatized the homeowners to be dead beats?
    If you talk mafia you loose credibiltiy? Guess there is no such thing as mafia! Right ! And all homeowners in all classes all races are “DEAD BEATS” all fifteen to twenty million of us in fraudclosure. Makes a lot of sense NOT!

    • Katheryn says:

      Shelley

      I refer to the GSEs as GSMs; there is really no difference between the mafia as we all know it and the elite group who have robbed the wealth from the middle and lower classes and redirected it into the off shore GSM accounts. If you rob and extort money from innocent hard working citizens with the help of government sponsored agencies Fannie/Freddie; I wouldn’t call it a stretch to refer to them as the legal government sponsored mafia. Others who done the same things are now wearing stripe suits instead of Armani. How come? We need to keep asking why? So it’s OK if they call me crazy. I have been called worse. LOL LOL LOL Actually, a nice visit to a warm hospital bed where I watch TV, basket weave and fill out my menu of choice for the next days meals which are served to me in bed; isn’t such a bad idea 🙂

    • lvent says:

      If the masses knew the truth, the whistleblowers could speak the truth…the honest politicians could do their jobs, the soldiers would put down their weapons the police and law enforcement, the soldiers would join us…victory would be ours….that is what they really fear…..people who get it ..and guns and bullets!

      • lvent says:

        I believe there are many undercover angels…waiting to be set free!!

      • lvent says:

        The only things we have to fear are lies and deceit…..! If the masses would stop finding the truth scaaaaary or depressing or both and get really pissed off at what has been hidden from the masses.then, we would have something….MASSES OF PEOPLE WHO KNOW THE TRUTH AND ARE PISSED OFF AND ARMED TO THE TEETH….THAT IS WHAT THE MONEYED ELITE REALLY FEAR….UNITY AND INDIVISIBILITY by THE PEOPLE….! I SAW A LAROUCHE SUPPORTER PASSING OUT IMPEACH OBAMA FLYERS TONIGHT….WHAT GOOD IS THAT??? THE TRAITORS ARE EVERYWHERE in GOVERNMENT AND THE OBAMA ADMINISTRATION AND CONGRESS/THE SENATE….THE MASSES KNOWING AND BELIEVING THE TRUTH AND UNIFYING AS ONE….THAT WILL SET US FREE.CUT OFF THE HEAD AND…..THROW OUT THE FED…RESTORE THE CONSTITUTUON AND ISSUE OUR OWN CURRENCY BACKED BY OUR OWN NATURAL RESOURCR REVENUES…ISSUED VIA STATE BANKS…AND EVERYTHING WILL FALL INTO PLACE!!!! ELIOT SPITZER FOR PRESIDENT 2012….!!! NATIONAL SOVEREIGNTY WILL PREVAIL…GOD BLESS AMERICA!!!

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