Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

When I worked at Fannie Mae (88-93), they would actually fly the original Mortgage Notes into Dulles airport and store them in a huge storage facility nearby.

Today, I think it is all digital (although I imagine the original Mortgage Notes have to be stored somewhere).

If you ever read a MBS Prospectus, you will see that Fannie Mae or Freddie Mac is the trustee of the MBS Pool of mortgages, on behalf of the beneficiaries, the MBS Investor(s).

When a mortgagor defaults on their mortgage, Fannie Mae and Freddie Mac (since they have guaranteed the timely payment of the Mortgage principal and interest payments to the MBS Investor) have the Mortgage Servicer initiate foreclosure proceedings.

Here, the Nevada mortgagor is claiming that the Fannie Mae foreclosure is improper since the FHFA (who has 'stepped into the shoes' of Fannie Mae as CONservator) is Unconstitutional.