Fannie Report Warned of Foreclosure Problems in 2006

Fannie Mae was warned in a 2006 internal report of abuses in the way lenders and their law firms handled foreclosures, long before regulators launched investigations into the mortgage industry’s practices.

The report said foreclosure attorneys in Florida had “routinely made” false statements in court in an effort to more quickly process foreclosures and raised questions about whether some mortgage servicers or another entity had the legal standing to foreclose.

The report found no evidence that borrowers were improperly placed in foreclosure.

“Fannie Mae took the necessary steps to address the specific issues identified by the 2006 report and regularly evaluates and enhances oversight of its retained attorney network,” said a Fannie Mae spokeswoman.

Read more at the WSJ here…

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