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Cummings Commends FHFA Decision to Terminate Faulty Foreclosure Attorney Networks

Cummings Commends FHFA Decision to Terminate Faulty Foreclosure Attorney Networks


Washington, DC (Oct. 18, 2011) – Today, Congressman Elijah E. Cummings, Ranking Member of the Committee on Oversight and Government Reform, responded to an announcement by the Federal Housing Finance Agency (FHFA) that it has instructed Fannie Mae and Freddie Mac to begin “transitioning away” from their use of designated foreclosure attorney networks to a system under which “mortgage servicers select qualified law firms that meet certain minimum, uniform criteria.”

“Several of these law firms were able to engage in abusive and illegal behavior that violated the rights of borrowers, in part because of deficient oversight by FHFA, Fannie Mae, and Freddie Mac,” said Cummings.  “In light of the extensive problems recently documented by the FHFA Inspector General, I urged FHFA to seriously consider terminating these attorney networks, and it appears they are implementing my request.”

“I remain concerned, however, that FHFA has not provided specific details about how mortgage servicers will select and oversee law firms to ensure that abusive behavior is prevented,” added Cummings.  “I will continue my oversight efforts to ensure that specific measures are in place to require mortgage servicers to properly oversee the actions of law firms conducting foreclosure proceedings, including those involving mortgages owned or backed by the government sponsored enterprises.”

On February 25, 2011, Ranking Member 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 FHFA Inspector General 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 23, 2011, the FHFA Inspector General issued a report concluding that Fannie Mae and its regulators, including FHFA, were alerted repeatedly to serious problems with the legal firms in Fannie Mae’s retained attorney network (RAN) beginning as early as 2003, but failed to take corrective action.  The Inspector General 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.”

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

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Fannie, Freddie Said to End Lawyer “Foreclosure Mill” Networks Amid Mortgage Woes

Fannie, Freddie Said to End Lawyer “Foreclosure Mill” Networks Amid Mortgage Woes


Nothing last forever… But now the servicers get to make the call on who they want to use… Already see the drama unfolding.

Bloomberg-

Fannie Mae and Freddie Mac will phase out their foreclosure attorney networks in the wake of the so-called robo-signing scandal, according to two people briefed on the plan.

The Federal Housing Finance Agency, which regulates the mortgage companies, may make the announcement as soon as this week, said the people, who spoke on condition of anonymity because the matter isn’t public.

Fannie Mae has required the mortgage servicers handling its loans to use its Retained Attorney Network for foreclosures and bankruptcy cases. Some lawyers were accused by lawmakers, regulators and consumer groups of mishandling paperwork for evictions and foreclosures, including falsifying signatures on court affidavits. The dispute led many mortgage servicers to suspend foreclosure activity last year.

[BLOOMBERG]

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© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Housing Wire Again Runs PR Masquerading as News on Behalf of Its Big Client, Lender Processing Services

Housing Wire Again Runs PR Masquerading as News on Behalf of Its Big Client, Lender Processing Services


Naked Capitalism- Yves Smith

The very fact that this item “LPS fires back with motion seeking sanctions against Alabama attorney,” was treated as a news story by Housing Wire is further proof that Housing Wire is above all committed to promoting client and mortgage industry interests and only incidentally engages in random acts of journalism.

LPS is desperate to create a shred of positive-looking noise in the face of pending fines under a Federal consent decree, mounting private litigation, and loss of client business under the continued barrage of bad press. Housing Wire, who has LPS as one of its top advertisers, is clearly more than willing to treat a virtual non-event as newsworthy to help an important meal ticket.

If you know anything about litigation, particularly when small fry square off against large companies, it’s standard for the well funded party to engage in a war of attrition against the underdog. One overused device is to threaten or file for sanctions. Even when they are weak or groundless, they still waste opposing counsel’s time and energy.

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Fannie Mae is adding fourteen jurisdictions to their attorney network

Fannie Mae is adding fourteen jurisdictions to their attorney network


Fannie Mae is adding the following fourteen jurisdictions (the new jurisdictions) to the mandatory retained attorney network:

Alaska, Idaho, Mississippi, Oregon,
Arkansas, Kansas, Nebraska, Utah
Delaware. Kentucky, New Mexico
District of Columbia, Maine, Nevada

[ipaper docId=49946117 access_key=key-1ecvxgr771j5ug8pn5wa height=600 width=600 /]

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