I’d like to add this tid bit: An attorney for Lender Processing, Martin Fiorentino, who lobbied on behalf of the company, is actively involved in both state and national politics. Fiorentino is a well-known political fundraising bundler, and has raised at least $102,9000 for presidential hopeful Mitt Romney. The Fiorentino Group has been paid at least $180,000 by Lender Processing Services since 2009.

Guess which Presidential candidate Bondi just endorsed?

Abigail C. Field-

Our national foreclosure crisis has epicenters; Florida is one. Florida’s Multiple Listing Service currently lists 15,755 foreclosure properties in Miami alone (Jan 8, 2012). Prices have fallen so far in some areas homes are selling for less than “a used Toyota.”

Foreclosure statistics, like all numbers, fail to convey the human misery involved. If “irresponsible borrowers” caused Florida’s crisis, well, no one would look to the Attorney General for action. What does law enforcement have to do with irresponsible borrowers? But that’s not what happened–banker fraud and gambling wrecked the housing market. And now the banks are resorting to document fraud to process the millions of foreclosures their earlier bad acts set in motion.

[REALITY CHECK]

“I will only have the very best, most skilled people on the job; those who embody the highest standards of ethics, responsibility, professionalism, and performance,” Bondi wrote. “These two staff attorneys clearly and repeatedly failed to measure up to these standards.”

With all the evidence, where is Florida’s lawsuit against LPS? Nevada had to take the bull by the horns since you couldn’t. Speaking of “ethics, responsibility, professionalism, and performance” … NEXT!

Orlando Sentinel-

An independent report released Friday cleared Attorney General Pam Bondi‘s office of any wrongdoing in the May firings of two lawyers in her South Florida office who were nationally recognized for exposing foreclosure fraud and unsavory mortgage lending practices.

The long-awaited report from Chief Financial Officer Jeff Atwater‘s office said no laws or policies were violated in the dismissal of Theresa Edwards and June Clarkson, who had argued that their firings came down to politics, not performance.

“A review of the circumstances surrounding the termination of Edwards and Clarkson, along with the information gathered during this inquiry, did not warrant initiating a formal investigation into a potential violation of law, rule or policy,” the report says. “During the course of the inquiry there was no specific allegation of wrongdoing made by any person, and no discovery of evidence of wrongdoing on the part of anyone involved in the matter.”

[ORLANDO SENTINEL]

image: i-tube.net

.

The Foreclosure Crisis: As California’s AG Issues Subpoenas, Florida’s AG Quits Worrying

This Week on the Florida Senate Democratic Update

Tallahassee — In the ongoing foreclosure crisis, California and Florida have a lot in common when it comes to the high number of people caught in its grip, but that’s about where the similarities end. California’s attorney general has been aggressively pursuing banks and lender service companies, recently issuing another round of subpoenas in her drive to pursue criminal and civil charges on behalf of victims of mortgage fraud and other unscrupulous foreclosure practices.

In Florida, Attorney General Pam Bondi took a decidedly different track. Not only did she move to protect financial companies from criminal prosecution, but fired two of the most aggressive attorneys in her agency pursuing mortgage fraud shortly after taking office. News of the ouster prompted a flurry of activity to justify the abrupt dismissals, with the attorney general apparently more concerned with her own well being than that of victimized homeowners. “I can finally go to sleep now and quit worrying about how these women will attempt to destroy me,” Bondi confided in one late-night email.

This week on the Florida Senate Democratic Update, Senator Eleanor Sobel (D-Hollywood) talks about Florida’s approach to the foreclosure fraud crisis, and the firings of June Clarkson and Theresa Edwards.  Three months after Bondi’s request to a fellow Republican Cabinet member for an “outside” investigation of the dismissals, Senator Sobel is still waiting for answers.

Watch this week’s reality check at: http://www.youtube.com/flasenatedems or www.flsenate.gov/offices/minority.

###

Mr. Edward DeMarco
Acting Director
Federal Housing Finance Agency
1700 G Street NW
Washington, D.C. 20551

Dear Acting Director DeMarco:

I am writing to request additional information about $150 million in fees that Fannie Mae and Freddie Mac charged mortgage servicing companies in 2010 for failing to conduct foreclosures quickly enough to meet federally imposed timelines. I am concerned that these penalties, at least some of which were ordered by the Federal Housing Finance Agency (FHFA), may have contributed to widespread abuses by mortgage servicing companies and law firms attempting to meet arbitrary deadlines to expedite foreclosures.

Evidence of Abuses Prior to 2010

On February 25, 2011,1 launched a major investigation into abuses and illegal activities
by mortgage servicing companies, including wrongful foreclosures, deficient recordkeeping,
inflated fees, and fraud in lending. As part of this investigation, I wrote to the FHFA Inspector
General requesting an investigation into “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.”1

On September 30, 2011, the Inspector General issued a report in response to my request
concluding that “there were multiple indicators of foreclosure abuse risk prior to 2010 that could
have led FHFA to identify and act earlier on the issue.” According to the Inspector General,
these warnings included “consumer complaints alleging improper foreclosures; contemporaneous
media reports about foreclosure abuses by Fannie Mae’s law firms; and public court filings in
Florida and elsewhere highlighting such abuses.”2

In one instance, a review commissioned by Fannie Mae found that “foreclosure attorneys
in Florida are routinely filing false pleadings and affidavits.” Similarly, in June 2010, officials
from FHFA’s Office of Conservatorship Operations performed a two-day field visit to Florida,
after which they noted:

[Servicers, attorneys, and other supporting personnel were overloaded with the volume
of foreclosures, the average timeline for foreclosures had increased from 150 to 400 days,
documentation problems were evident, and law firms (referred to as "foreclosure mills")
were not devoting the time necessary to their cases due to Fannie Mae's flat fee structure
and volume-based processing model.3

Despite evidence of widespread problems among foreclosure law firms retained by
Fannie Mae and Freddie Mac, the Inspector General's report concluded that FHFA "did not
begin to act on foreclosure abuse issues involving Fannie Mae's RAN until mid-2010." The
Inspector General recommended that FHFA review why it failed to heed these warnings sooner,
implement comprehensive procedures to prevent these abuses in the future, and address "poor
performance" by law firms that have contractual relationships with Fannie Mae and Freddie
Mac. FHFA agreed with all of these recommendations.4

Penalties for Slow Foreclosures

In addition to finding that there were multiple indicators of foreclosure abuse prior to
2010, the Inspector General reported that during this same timeframe in 2010, FHFA "directed
Fannie Mae to impose compensatory fees against the servicers for violating foreclosure timeline
limits."5

In fact, FHFA General Counsel Alfred M. Pollard disclosed in a letter to me on
November 1, 2011, that Fannie Mae and Freddie Mac assessed penalties totaling approximately
$150 million in 2010. He wrote:

To date, the top ten servicers account for the bulk of the fees due; the total amount for all
servicers, after approving appeals and corrections, is approximately $150 million dollars
for 2010.6

Mr. Pollard also described the methodology for calculating these penalties. He
explained:

Fees are assessed based on each Enterprise's specific allowable foreclosure timelines for
individual states as published in their Seller/Servicer Guides. Each Enterprise assesses
the servicers a per day fee—approximately $30 a day—for each day that the servicer
exceeds the established timeline.7

The size and timing of these penalties raise serious questions about whether FHFA may
be more interested in expediting foreclosures to clear its books than protecting the rights of
homeowners.

Request for Information

On October 3, 2011,1 wrote to you to inquire about the extent of penalties imposed
against mortgage servicers that failed to meet federally imposed timelines to conduct
foreclosures. Specifically, I requested that you "provide a list of all servicers that have been
assessed compensatory fees, identify the total amount of fees assessed against each servicer,
identify the reasons these fees were assessed, and identify whether the fees have been paid in
f u l l . " 8

Although the letter from Mr. Pollard disclosed that the total amount of these penalties for
2010 was $150 million, it did not provide the specific information I requested, including the
amount of fees charged to each mortgage servicing company. For these reasons, I request that
you provide the following information:

(1) a list of all servicers that have been assessed compensatory fees;
(2) the total amount of fees assessed against each servicer;
(3) the reasons these fees were assessed against each servicer;
(4) whether each servicer assessed compensatory fees has paid the assessed fees in
full; and
(5) if a servicer has not yet paid the assessed fees in full, the expected date by which
the fees will be paid in full.

I request that you provide this information by November 30, 2011. I also request that you
provide the information requested above regarding compensatory fees assessed against mortgage
servicers in 2011 when that information becomes available. Thank you for your consideration of
this request.

Sincerely,

Elihah E. Cummings

Ranking Member

cc: The Honorable Darrell E. Issa, Chairman
Committee on Oversight and Government Reform

Scribd

Via Foreclosure Hamlet-

I urge everyone to email

Melissa Sotillo msotillo@pbcgov.org

[FORECLOSURE HAMLET]

Scribd

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

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]

.

FEDERAL HOUSING FINANCE AGENCY
OFFICE OF INSPECTOR GENERAL

FHFA’s Oversight of Fannie Mae’s
Default-Related Legal Services

Scribd

Jack Pot! Just take a look at my research from New York cases, but this only goes back to 2004. However, it still demonstrates this was an ongoing pattern with foreclosures.

Question remains will the tax payers continue to bailout these criminal acts?

Red flags sprouted even before… DEPOSITION TRANSCRIPT OF DAVID J. STERN ESQ. FROM 1/19/2000 BRYANT v. STERN

NYT-

Fannie Mae, the mortgage finance giant, learned as early as 2003 of extensive foreclosure abuses among the law firms it had hired to remove troubled borrowers from their homes. But the company did little to correct the firms’ practices, according to a report issued Tuesday.

Only after news reports in mid-2010 began to describe the dubious practices, like the routine filing of false pleadings in bankruptcy courts, did Fannie Mae’s overseer start to scrutinize the conduct. The report was critical of that overseer, the Federal Housing Finance Agency, and was prepared by the agency’s inspector general.

[NEW YORK TIMES]

Sorry to interrupt. But here it goes because “WE” have trust issues.

Exactly what qualifications do these “third-party companies” have? What if the servicer is not one of the 14? What will happen to deficiency judgements, in case they try to come after you? Because as I picture it, those of you who “may” get pocket change thrown at you might get hit with a DJ before the change lands in your hands. Then here goes the beauty of this article

“It hasn’t been determined whether borrowers that accept restitution would have to agree to surrender related legal claims.”

Think about this one and what it all means. It’s the same type of garbage they were trying to throw at NY AG Schneiderman.

But it don’t matter because they’re moving “full-steam ahead” with a settlement with or without participating AG’s.

WSJ-

Millions of current and former homeowners will have a chance to get their foreclosure cases examined to determine whether they should be compensated for banks’ mistakes, under a wide-ranging review being planned by federal regulators.

The review process, which could be unveiled in the next few weeks, will be open to borrowers who were in some stage of foreclosure in 2009 or 2010. Estimates prepared by the Office of the Comptroller of the Currency, which will oversee the review, indicate that 4.5 million borrowers could be eligible for review.

[WALL STREET JOURNAL]

I’ll say it again, Their days are numbered. Plenty to hide but eventually the cat will come out of the bag!

HuffPO-

For many months, people concerned about the anemic American economy have focused on the housing market, and the reality that many of the nation’s homeowners remain underwater, owing banks more than their homes are worth. Eyes have turned to Fannie Mae and Freddie Mac, the two government-controlled mortgage behemoths that collectively back about half of the nation’s $11 trillion worth of outstanding home loans: If they would forgive a significant slice of this debt for homeowners facing difficulty, that would give borrowers a greater stake in their properties, diminishing the foreclosure crisis. The move would put more money in people’s pockets via lowered mortgage payments — money that borrowers would in turn spend, generating jobs for other people.

But the government body that now supervises Fannie and Freddie, the Federal Housing Finance Agency, has refused to…

[HUFFINGTON POST]

FEDERAL HOUSING FINANCE AGENCY
OFFICE OF INSPECTOR GENERAL

Evaluation of the Federal Housing Finance Agency’s
Oversight of Freddie Mac’s Repurchase Settlement
with Bank of America

EXPLANATION OF REDACTIONS IN THIS REPORT
This report includes redactions requested by the Federal Housing Finance Agency (FHFA) and the Federal Home Loan Mortgage Corporation (Freddie Mac). According to FHFA and Freddie Mac, the redactions are intended to protect from disclosure material that they consider to be confidential financial, proprietary business, and/or trade secret information, which Freddie Mac claims it would not ordinarily publicly disclose and, if disclosed, could place it at a competitive disadvantage.

Scribd

© 2010-12 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
www.StopForeclosureFraud.com

Just like his Twin Fannie and their Robo-Machine…it’s just all a mess. I give them a few months and kaput! 

WSJ-

A federal watchdog said Freddie Mac may have given up opportunities to recover billions of dollars in claims over defaulted mortgages and suggested that a January settlement with Bank of America Corp. to resolve $1.3 billion in bad-loan claims was inadequate.

The report is to be released Tuesday by the inspector general for the Federal Housing Finance Agency, which regulates Freddie Mac and its larger cousin, Fannie Mae.

A senior FHFA examiner warned in September 2010, months before the Bank of America settlement, that Freddie “could be passively absorbing billions of dollars in losses” by not more aggressively reviewing defaulted …

[WALL STREET JOURNAL]

Once again, without “MERS”, This would not have been made possible. Not only did they give power to 20,000+ certifying officers “VP’s” nationwide the ability to sign any document, it also opened up the possibility to forging, backdating and fabricating them as we’ve seen in court cases!

They knew what was happening.

AP-

Fannie Mae missed chances to catch law firms illegally signing foreclosure documents and its government overseer did not take the right steps to ensure Fannie was doing its job, federal regulators say.

The Federal Housing Finance Agency’s inspector general said in a report Friday that Fannie failed to establish an “acceptable and effective” way to monitor foreclosure proceedings between 2006 and early 2011. Government regulators then failed to ensure it was complying with demands that it clean up its programs.

[ABC NEWS]