Sunday, February 05, 2012

"Mortgage Tornado Warning, Unheeded" - The New York Times at its Best

See this article published yesterday on the efforts of Florida businessman Nye Lavalle to bring to Fannie Mae's attention unfair and fraudulent businesses practices of those in the mortgage industry.  The Times article has a link to the full text of the investigative report made by a major law firm that had been retained by Fannie Mae to look into Mr. Lavalle's allegations.

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.

-from the investigative report.

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