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

    …. Quicken Loans and Commissions Why would Quicken put people in homes they can’t afford? Commissions. Quicken is not a bank. They make home loans but do not keep those loans. Immediately after the loan closes, Quicken sells those loans. Institutional investors won’t buy the loans, however, unless they are insured. Agencies like the FHA, Fannie Mae…

    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- 10 readers -
  • Anatomy of a Force Placed Insurance Scheme (California)

    … by the FHA or Fannie Mae or Freddie Mac and when banks kept the loans they wrote, the banks had an incentive to keep you in your home. They had an incentive to help you through rough patches. No more. Now, they view defaults as a way to make money. In this post, we will examine a case brought by homeowners in California. Depending on the bank or company…

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

    … another mortgage underwriting fraud cases against Primary Residential Mortgage (PRMI). The company agreed to pay $5 million to settle the case. According to the Justice Department, “PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where: PRMI failed to document the assets used to qualify…

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

    … are guaranteed by the Federal Housing Administration (FHA). Others like Fannie Mae also have similar guaranty programs. Because these products have federal backing, issuers like AAG, RMS and Aegean must certify their loans are I compliance with all HUD and FHA guidelines. Unless the housing market really crashes, taxpayers probably won’t have…

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

    … Settlement with United Shore Financial Services The case against United Shore was prosecuted by the Department of Justice and the Inspector General of HUD. The Office of the Inspector General is the law enforcement arm of HUD. Prosecutors in Washington DC, Madison, Wisconsin and Detroit participated in the case. In announcing the settlement, a Justice…

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

    … servicing work offshore. Most of that work goes to India and the Philippines. The rating agency Fitch has raised concerns about the industry’s offshoring practices. We share those concerns. Although all aspects of outsourcing and offshoring raise concerns, we especially worry about the latest trend of sending underwriting, loan processing and QC…

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

    … the company was shut down by HUD, Allied lost much of its borrowing capacity. Like most banks and lenders today, Allied makes it money when it sells a loan. Their profit is the commission they earn when the loan is made and underwritten. Since they are not a bank, they borrow money to reloan it. As Allied’s creditors stopped the flow of capital…

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

    … not getting paid. (Many didn’t get paid anyway.) By 2006 and 2007, HUD says that almost 55% of the loans coming out of Allied were bad. The compliance department was paper thin and wasn’t interested in compliance. The government’s complaint, which is available here, said, “Allied utterly failed to conduct audits of its branches or review its early…

    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

    … was a former manager for Allied. In the run up to the financial crisis, Allied Home Mortgage was one of the largest FHA lenders in the nation. Original Whistleblower Complaint Against Allied Home Mortgage We are proud to have filed this action. According to our original complaint, Allied operated a net branch scheme in violation of HUD rules. Since…

    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 -
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