Fannie Mae-No Politics (FNMA)

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Too-Big-to-Fail Bankers Have Not Been Charged Criminally for the Mortgage-backed Securities Collapse But Plenty of People Have Been Criminally Charged for Mortgage Fraud Perpetrated by the Bankers
As early as 2004, the FBI was warning of widespread mortgage fraud. CNN reported, “Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an “epidemic” of financial crimes which, if not curtailed, could become the next S&L crisis.” Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions. ‘It has the potential to be an epidemic,” said Swecker, who heads the Criminal Division at FBI headquarters in Washington. “We think we can prevent a problem that could have as much impact as the S&L crisis,’ he said.” (Click here for the complete 2004 story from CNN.) The financial crisis cause by mortgage fraud was not even close to the size of the S&L crisis—it was at least 40 times bigger!! Why didn’t the FBI stop it, and why are they not prosecuting the crime now? [Source]

Michael P. Stephens is the Federal Housing Finance Agency’s acting inspector general. Stephens leads the Office of Inspector General section of the Residential Mortgage-Backed Securities Working Group, whose other members include the Department of Justice and state attorneys general. The group coordinated a $13 billion settlement between JPMorgan Chase & Co. and the government in 2013, among other actions. His own agency is the watchdog for the overseer of taxpayer-backed Fannie Mae and Freddie Mac. Stephens said he’s “not a big fan” of the idea that banks shouldn’t be charged criminally because it could hurt their employees and shareholders.
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