Fannie Mae (FNMA)

[KELLYCO]

A good article.
But as with all white collar crime,only a small portion will be vindicated.
Funny how the article was on the side of Freddie and Fannie and did not mention that their execs wanted the big bonuses and purposefully ignored that the securities that they bought were not what they were reselling them as.
It is not a one way street.
Fannie and Freddie had the same responsibility to check the mortgage pool as did the banks that wrote them.
Same as when a bank checks on the validity of a loan application.

http://en.wikipedia.org/wiki/Tort

"In much of the Western world, the measure of tort liability is negligence. If the injured party cannot prove that the person believed to have caused the injury acted with negligence (lack of reasonable care), at the very least, tort law will not compensate (pay) the victim. However, tort law also recognizes intentional (purposeful) torts and strict liability torts, which apply when the person accused of committing the tort satisfied certain standards of intent (meaning) and/or performed certain types of conduct.

In tort law, injury is defined broadly. Injury does not just mean a physical injury, such as where Brenda was struck by a ball. Injuries in tort law reflect any invasion of any number of individual interests. This includes interests recognized in other areas of law, such as property rights. Actions for nuisance (annoying or hurting) and trespass (unlawful entering) of land can arise from interfering with rights in real property. Conversion law and trespass to chattels (personal property) can protect interference with movable property. Interests in prospective (possible future) economic advantages from signed agreements can also be injured and become the subject of tort actions. A number of situations caused by parties in a contractual (written agreement) relationship may still be tort rather than contract claims, such as breach of duties."

In the next round of financial collaspe expect some TORTS served up.
Fannie and Freddie,Would you like your torts with jam or cream cheese?

I will give you an example.
I have first hand knowledge of a mortgage that Freddie claims to have bought in march of 2010.
Below is a link to Freddies required appraisal form .

http://www.freddiemac.com/sell/forms/pdf/70.pdf

I can tell you it is impossible for one of these to be completed.
Even when the mortgage was written the appraiser did not step foot into the property and pobably did not even get out of his car.
At best he wrote a resticted appraisal.

http://www.allbusiness.com/glossaries/restricted-appraisal-report/4965718-1.html

"an appraisal report that contains minimal detail and is intended to be received or relied upon by the client only, not any other party.

Example: Cheeseburgers of America, which has 2,000 outlets nationally, wanted to get an estimate of value of all the real estate it owns for its own decision-making purposes. They requested, of a state-certified general appraiser , a report for that purpose. The report was not to be a self-contained appraisal , but rather one that has a brief analysis of the building and land at each location. No other appraisal report user is considered."

I'd say Fannie and Freddie do have the responsibility to check out their own paperwork.

Do you want to know how the banks are trying to get these reports accomplished?
I can tell you that I know first hand that the insurance company of the property has sent out a letter to request a owner written survey of the property that is as comprehensive as the appraisal form.
It is something that should be voluntary(the insurance company claims it is the protect homeowner to insure they have enough coverage.
But they call property owner several times a week nagging to get the survey filled out.
The insurance companies are also asssisting the banks and Freddie/Fannie to cover up their fraud.