Freddie Mac

The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County, Virginia.The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases.
Posts about Freddie Mac
  • Original Notes and Loan Papers: What Does a Lender Need to Foreclose?

    … of the promissory note but need not show possession of the mortgage itself. So the question remains, how does a plaintiff “show possession” of the promissory note? Does the original need to be produced? Possession of the Original Promissory Note in New York In accordance with the common law “best evidence rule,” a party seeking to prove the disputed…

    Ronald D. Weiss, PC- 12 readers -
  • 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 -
  • 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

    … 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 -
  • 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?

    … 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 -
  • Wells Fargo Hits a New Low (Bank Whistleblower Post)

    … 2012 Wells Fargo was one of five large mortgage servicers that agreed to pay a total of $25 billion to settle claims of wrongful foreclosures. Wells Fargo’s share was $5.35 billion. One year later, the New York Attorney General sues after claiming the state received a “significant number of complaints regarding…flagrant violations…

    Due Diligence- 34 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 -
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