There are a few of angles here:
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1) D.O. purchased the stalest of debts from Fannie. Why? Because (a) those are the people who have had the longest period to recover, and (b) this is when Florida home values were at their lowest, creating the greatest deficiency gap. Imagine these people who have already taken the credit hit and have moved on, only to be sued 8 years after they walked away from their underwater home.
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2) D.O. and its lawyers are knowingly violating the Federal Fair Debt Collections Practices Act by suing hundreds of out-of-state consumers on a purely unsecured debt.
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3) Every one of these lawsuits attach two assignments – One from the original plaintiff to FNMA and another from FNMA to Dyck-O’Neal. The FNMA to Dyck-O’Neal assignment is executed by an officer of Dyck-O’Neal “as attorney in fact for FNMA.” See the attached POA which purportedly gave D.O. the power to do this back in October of 2008 pursuant to a separate “Deficiency Pursuit Agreement” from 2008. I think this agreement raises all sorts of questions. This is right after it was placed into conservatorship by the U.S. Treasury in September 2008.
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4) Homeowners are getting it on both ends – Foreclosure courts, run by retired Senior Judges, rammed all of these foreclosures through the system with the justification of getting the collateral back to the banks. In order to do this, these senior judges routinely rule in favor of the banks with watered-down evidence because the banks have such a hard time proving ownership of the loans. I believe that these retired judges never thought FNMA would be showing up in court again to get these deficiency judgments.
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5) In addition to D.O., Mortgage Guaranty Insurance Corporation – a mortgage protection insurance company who paid out claims to servicers also filed a bunch of suits just under the deadline. These suits were also filed by the same D.O. lawyers. Many of these suits also violate the FDCPA by suing out of state defendants on unsecured claims.
