About It appears that Fannie Mae lied and was pushing foreclosures instead of loan modifications as they had originally insisted.
Fannie Mae has released papers and internal memos indicating that the government-controlled GSE has been pushing its lenders to opt for foreclosure instead of loan modifications and threatening to “charge a penalty to lenders who allowed foreclosures to wait too long before they were executed” . . . Ethical arguments about this policy aside, these memos are dated from the same time that Fannie Mae officials were testifying in congressional hearings that they “were doing everything in their power to prevent foreclosures.”
Nearly everything we see coming out of Washington is complete corruption and lies.
“I am thoroughly disgusted by the actions of Fannie Mae,” said Ingham County Register of Deeds Curtis Hertel, who is currently suing Fannie Mae and other lenders arguing that they failed to pay Ingham county millions of dollars in title transfer taxes. “What these internal documents show is that while Fannie Mae was being bailed out by taxpayers they were systematically pushing for citizens to be foreclosed. The reason for this is even worse. Right now we as taxpayers pick up the cost of every foreclosure, because we pay Fannie Mae’s loss in the foreclosure process. In other words they actually get paid more for a foreclosure than for a reasonable modification.”
Neeta Delaney, co-director of the Michigan Foreclosure Task Force, had a slightly more muted response.
“We see this on a daily basis. It is what we have been characterizing as the right hand not knowing what the left hand was doing,” she said. Her coalition represents nearly 200 groups with a stake in ending the foreclosure crisis and is working to push new foreclosure related legislation through the legislature. “It’s not new news (foreclosures during modification negotiations). But the documents are new news. These documents are implying a policy behind this. It’s not just the banks being overwhelmed.”
Read more:http://michiganmessenger.com/51716/officials-angered-over-fannie-mae-disclosures