Fannie Mae

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, was founded in 1938 during the Great Depression as part of the New Deal. It is a government-sponsored enterprise (GSE), though it has been a publicly traded company since 1968. The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS), allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on locally-based savings and loan associations (aka "thrifts").
Posts about Fannie Mae
  • Whistleblower Suit Against Quicken Loans Proceeds

    … and Freddie Mac provide the bulk of the insurance for residential mortgages. Because Quicken doesn’t keep the loan, the money they make is from the commission. When the loan is sold, they make their commission. If the loan later defaults, Uncle Sam and the Federal Housing Administration is on the hook, not Quicken. (That means taxpayers!) Quicken…

    Due Diligence- 19 readers -
  • The Expiration of HAMP: What Options do Homeowners Have Now?

    … into this year to help ensure the transition after HAMP was as smooth as possible. The options for modifying your loan under HARP are more limited than they were through HAMP and the criteria to qualify is different,6 though it can still be a beneficial program for the next few months. Fannie Mae Flex Modification Program – The federal government did…

    Ronald D. Weiss, PC- 11 readers -
  • Anatomy of a Force Placed Insurance Scheme (California)

    … If you are reading this post and don’t know what “force placed insurance” is, we are happy for you. Unfortunately, millions of Americans know the term all too well. When you finance the purchase of a home, your lender requires the home be insured. If your home is destroyed by a flood, fire or earthquake, the bank wants to be sure it will still…

    Due Diligence- 15 readers -
  • Mortgage Underwriting Fraud in 2016 – Whistleblower Post

    … qualify if backed by the FHA or VA. Loans by Fannie Mae and Freddie Mac also qualify. If you have inside information about wrongdoing, we help you investigate and file a sealed lawsuit in federal court. Ultimately the Justice Department can take over the case or allow us to prosecute. While being investigated, the case is usually sealed meaning…

    Due Diligence- 18 readers -
  • The Last Post Crisis Deal? Probably Not – Credit Suisse Whistleblower Post

    … were solid. The Bottom Falls Out of the RMBS Market Credit Suisse and other big lenders were caught with their pants down when the market collapsed in 2008. The loan bundles were soon exposed as junk. Fannie Mae, Freddie Mac and the FHA lost billions when they had to pay off loan guaranties. Most of the big banks have settled the allegations from…

    Due Diligence- 18 readers -
  • Reverse Mortgages – New Class Action Opportunity

    … to making false claims about their products, RMS also used high pressure sales tactics and told some potential borrowers that they had to decide that day to apply or lose eligibility. Aegean Financial (Jubilados Financial) The third lender targeted by the CFPB was Aegean Financial. Based in California, Aegean operates in just five states. It also…

    Due Diligence- 12 readers -
  • USFS Settles Crisis Era False Claims Act Mortgage Fraud Case

    … that are guaranteed by the government. Today, most home loans are sold immediately after closing. Investors won’t buy those loans unless guaranteed. The FHA, VA, Fannie Mae, Freddie Mac and a few private insurers offer these guarantees. Because Fannie and Freddie are under a government conservatorship, most loans are today backed by taxpayers. Lenders can issue…

    Due Diligence- 19 readers -
  • Is Outsourcing a Dirty Word for Mortgage Underwriters?

    … or Freddie Mac. If a company outsources work and fails to meet regulatory requirements the conduct may be a violation of Act. Ditto if the outsourcing results in poor quality mortgages. Underwriters must certify they are in compliance with all regulations and lending guides. A company that knowingly lies can be subject to significant penalties. The Act…

    Due Diligence- 12 readers -
  • Allied and Jim Hodge… What Next?

    … years, the Justice Department has paid over $1 billion in whistleblower awards. $435 million was paid in 2014 alone. To earn an award, one must have original source (“inside”) information about wrongdoing involving government programs or funds. In residential mortgages, that means loans guaranteed by the FHA, VA, Fannie Mae or Freddie Mac. If you…

    Due Diligence- 13 readers -
  • More Details on Allied Home Mortgage and Jim Hodge Emerge

    … wrote FHA backed loans, it’s wrongdoing qualified under the statute. (Fannie Mae and Freddie Mac loan programs now qualify too since Congress extended the law to them after the 2008 financial crisis.) The False Claims Act is quite popular today because the first to file whistleblower can receive up to 30% of whatever the government collects. The law…

    Due Diligence- 10 readers -
    Earlier about the same topic:
  • Federal Appeals Court Win for Whistleblowers

    …. (In the latter example, most residential mortgages are backed by the FHA, VA, Fannie Mae or Freddie Mac meaning tax dollars.) To encourage whistleblowers to file suits and help stop greed and fraud, the law allows whistleblowers to receive a cash award of up to 30% of what the government collects. Million dollar awards are common. In addition…

    Due Diligence- 11 readers -
  • BREAKING NEWS: Huge Win in Allied Home Mortgage Fraud Case

    … of these loans, the FHA guaranteed these loans. (This is much like Fannie Mae, Freddie Mac and the VA back loans.) If the loan later defaults, the government is on the hook for any deficiency. Without these loan guarantees, no one would buy these loans and there wouldn’t be any mortgage money available for home buyers. Allied was caught…

    Due Diligence- 13 readers -
  • “My Family Thinks I’m a Fraud for Working at Wells” – FIRREA Post

    … government funds or programs. Since most residential home loans are backed by Fannie Mae, Freddie Mac, the VA or the FHA, bankers working with mortgage underwriting or servicing may qualify. FIRREA and Whistleblower Awards FIRREA is short for the Financial Institutions Reform Recovery and Enforcement Act. Along with its companion FIAFEA (Financial…

    Due Diligence- 13 readers -
  • CFPB to Examine Discriminatory Lending Practices (Whistleblower Post)

    … insured home loans may be a violation of the Act. Since most home mortgages are backed by the FHA, Fannie Mae, the VA or Freddie Mac, a violation of federal anti-discrimination laws could also violate the False Claims Act. Under that law, a whistleblower with inside information about violations of mortgage discrimination laws could receive between…

    Due Diligence- 23 readers -
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