Cummings Applauds End of “Retained Attorney Network”; Warns That Fannie and Freddie Must Ensure that Foreclosure Lawyers Follow the Law

Cummings Applauds End of “Retained Attorney Network”; Warns That Fannie and Freddie Must Ensure that Foreclosure Lawyers Follow the Law

Washington, DC (Nov. 9, 2012)—Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement in response to new guidelines issued by Fannie Mae and Freddie Mac effectively ending the use of the “retained attorney network” and requiring mortgage servicers to assume greater responsibility for selecting law firms that handle foreclosure cases:

“I am disappointed that it has taken FHFA so many years to acknowledge these serious problems and finally develop the guidelines that will terminate these networks.  As I review the policies announced today, I will look to see that they will truly ensure that the firms selected by servicers to handle foreclosure cases are staffed, compensated, and supervised in a way that will prevent future abuses.”

On February 25, 2011, Cummings launched a major investigation into abuses and illegal activities by mortgage servicing companies, including wrongful foreclosures, inflated fees, and the filing of improperly executed legal documents during the foreclosure process.  As part of that investigation, Cummings sent a letter asking the Inspector General of the Federal Housing Finance Agency (FHFA) to examine “widespread allegations of abuse by private attorneys and law firms hired to process foreclosures as part of the ‘Retained Attorney Network’ established by Fannie Mae.”

On September 30, 2011, the Inspector General issued a report concluding that Fannie Mae and its regulators—including FHFA—had been alerted repeatedly as early as 2003 to serious problems with the legal firms in the retained attorney network (RAN), but failed to take corrective action.  The Inspector General also reported that “FHFA did not begin to act on foreclosure abuse issues involving Fannie Mae’s RAN until mid-2010,” despite “multiple indicators of foreclosure abuse risk prior to 2010 that could have led FHFA to identify and act earlier on the issue.”

Upon release of the Inspector General’s report, on October 3, 2011, Cummings sent a letter to FHFA Acting Director Edward DeMarco requesting additional documents and information regarding these oversight failures. Cummings requested that the agency “give serious consideration to terminating the existing Fannie Mae Retained Attorney Network program.”  He also requested that “FHFA take immediate and decisive action to remedy these failures and ensure that no additional borrowers suffer similar abuses.”

SOURCE: http://democrats.oversight.house.gov

Copy of the new guidelines below…

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4closureFraud.org

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Servicing Guide Announcement SVC-2012-22

Comments
2 Responses to “Cummings Applauds End of “Retained Attorney Network”; Warns That Fannie and Freddie Must Ensure that Foreclosure Lawyers Follow the Law”
  1. serena says:

    When the fuck is it gonna start? Donnan graves and ingora is still filing and the courts are letting them

  2. JohnR says:

    So let’s see… massive fraudulent document creation and submission, Nationwide, into the Court’s of our Nation… means you reap massive profits, so much in fact that after just a year or 2, who cares if the Law License is revoked, I’m rich and don’t ever need to practice Law again. Or, “I wish these people would quit trying to fight these foreclosures… I can’t give them a free house… if I do I’ll lose my biggest re-election campaign contributors”… “and I like this job!”.

    Not only will this not be over until the titles of millions of homes are “cleaned” in THE lawful manner… ie., give the homes back and re-foreclose (and do it right this time), it won’t be over until the “Legal Industry” that’s been offering forged and fraudulent documents (Plaintiff’s Bankster’s Lawyers) created solely to facilitate their illegal seizure of our homes, AND the judges who, having been shown the obvious fraud and theft but have decided to take it upon themselves to rule according to their back pocket instead of within the Law, are imprisoned.

    If my mechanic charges me for a brake job… says he did it when he didn’t, and I suffer an injury because of it… I can sue because his lie was illegal.

    If a plumber says he “fixed the leak” and he didn’t… and my ceiling falls in on my head because of it… I can sue because his lie was illegal.

    Same goes for an electrician, an accountant, a Doctor, everyone. It’s part of “the Social Contract” we all live within.

    We pay a Judge’s pay and we do it only after he is sworn to uphold the law & justice. When they quit doing their job, they need to be fired, but when they obviously rule against the law and in favor of their own campaign contributors… they need to be put in jail.

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