A Mortgage Tornado Warning, Unheeded

New York Times ^ | 2/4/2012 | Gretchen Morgenson

[Shane]

YEARS before the housing bust — before all those home loans turned sour and millions of Americans faced foreclosure — a wealthy businessman in Florida set out to blow the whistle on the mortgage game. Multimedia Document Report to Fannie Mae Regarding Shareholder Complaints Add to Portfolio Federal National Mortgage Association Fannie Mae Go to your Portfolio » His name is Nye Lavalle, and he first came to attention not in finance but in sports and advertising. He turned heads in marketing circles by correctly predicting that Nascar and figure skating would draw huge followings in the 1990s. But after losing a family home to foreclosure, under what he thought were fishy circumstances, Mr. Lavalle, founder of a consulting firm called the Sports Marketing Group, began a new life as a mortgage sleuth. In 2003, when home prices were flying high, he compiled a dossier of improprieties on one of the giants of the business, Fannie Mae. In hindsight, what he found looks like a blueprint of today’s foreclosure crisis.

[Shane]

“Any attorney general, lawyer, bank director, judge, regulator or member of Congress who does not open their eyes to the abuse, ask pertinent questions and allow proper investigation and discovery,is only assisting in the concealment of what may be the fraud of our lifetime.” We will see if anyone steps up to the plate. I'm not holding my breath.

[Red Badger]

We ALL know what happened.
Alarm bells were going off everywhere.
Nobody in DC cared...................

[ronnie raygun]

It’s all planned

[Theoria]

'Created by Fannie, Freddie and big banks, MERS claims to hold title to roughly half the nation’s home mortgages. Judges and lawmakers have questioned MERS’s legal authority to initiate foreclosures, and some judges have thrown out foreclosures brought in its name. On Friday, New York’s attorney general sued MERS, contending that its system led to fraudulent foreclosure filings. MERS refuted the claims and said it would fight.

Mr. Lavalle warned Fannie years ago that MERS couldn’t legally foreclose because it didn’t actually own notes underlying properties. '

No Kidding.

[TheOldLady]

Click the Flames

Your Conservative Source of News and Information

Abolish FReepathons
Donate Monthly

Sponsors will contribute $10
For each new monthly sign-up!

[exDemMom]

Anyone could have foretold this crisis, from the very first day the Clinton administration started forcing banks to lend to unqualified borrowers. The only question was, how long would it take to collapse the system?

[DuncanWaring]

Anyone could have foretold this crisis, from the very first day the Clinton administration started forcing banks to lend to unqualified borrowers.

It wasn't just "the Clinton administration".

Contributing also was a young "community organizer" in Chicago who also filed a lawsuit against Citibank which ultimately led to them making more loans to people who had no chance of ever paying them back.

[cherry]

from the very first day that a young supposed Harvard grad. starting suing banks to force them to give mortgages...