[CA] sues for answers from Fannie Mae, Freddie Mac on housing meltdown
Posted by admin / Under Subprime Lending
California Atty. Gen. Kamala D. Harris is suing Fannie Mae and Freddie Mac to force the mortgage giants to answer questions about their role in California's housing meltdown. In two suits filed Tuesday in San Francisco County Superior Court, Harris seeks to compel the companies to respond to subpoenas from her office that have been ignored so far. Harris is seeking information about the practices by Fannie and Freddie in California as part of her ongoing investigation into the mortgage industry. The suits ask a judge to order the two companies to answer a set of 51 questions served in...
Published on Tuesday 7th of February 2012 09:00:16 AM
US charges ex-Fannie, Freddie CEOs with fraud
Posted by admin / Under Subprime Lending
The Securities and Exchange Commission has brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust. Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis. Mudd, 53, and Syron, 68, led the mortgage giants when the housing bubble burst in late 2006 and 2007. The four other top executives also worked for the companies during...
Published on Tuesday 7th of February 2012 09:00:16 AM
A Mortgage Broker on Rapid Credit Rescores for Subprime Loans
Posted by admin / Under Subprime Lending
BEGIN TRANSCRIPT RUSH: Laurie, who can't say where she is. Is that right? She's worried about lawsuits, so she can't say where she is. Laurie, welcome to the EIB Network. You're worried about the lawsuits from what you're going to say here? CALLER: Well, it's possible, Rush, and, by the way, it's an honor to speak to you. RUSH: Thank you. CALLER: I worked as both a packager and an advertising executive for a mortgage brokerage firm. I saw the rise and fall of the housing market and what infuriates me about when Obama speaks or Barney Frank or anyone...
Published on Tuesday 7th of February 2012 09:00:16 AM
Rep. Barney Frank won't seek re-election
Posted by admin / Under Subprime Lending
Rep. Barney Frank won't seek re-election Posted by CNN Wire Staff (CNN) - Massachusetts Congressman Barney Frank, a 16-term Democrat, will announce Monday he does not intend to seek re-election in 2012........
Published on Tuesday 7th of February 2012 09:00:16 AM
The Virgin Crisis: Systematically Ignoring Fraud as a Systemic Risk
Posted by admin / Under Subprime Lending
The FBI warned in September 2004 that there was an “epidemic” of mortgage fraud and predicted that it would cause a financial “crisis” if it were not contained. The mortgage banking industry’s own anti-fraud experts reported in writing to nearly every mortgage lender in 2006 that: “Stated income and reduced documentation loans speed up the approval process, but they are open invitations to fraudsters.” ....stated income loans deserve the nickname used by many in the industry, the ‘liar’s loan’”. We know that accounting control fraud is itself criminogenic – fraud begets fraud. The fraudulent CEOs deliberately create the perverse incentives...
Published on Tuesday 7th of February 2012 09:00:16 AM
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