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Report: Fannie Mae Aware of Dubious Foreclosure Practices as Early as 2003

HeadlineOct 04, 2011

A government report has revealed mortgage giant Fannie Mae was aware of allegations of improper foreclosure practices by law firms it relied on as early as 2003 but did not act to stop them. The report criticizes the Federal Housing Finance Agency for failing to scrutinize Fannie Mae’s support of dubious foreclosure activities until 2010. The report marks the second in just two weeks criticizing the Federal Housing Finance Agency (FHFA) and the companies it oversees. The report outlines the implementation of “robo-signing” by law firms working under Fannie Mae, which led some lenders to suspend foreclosures last fall.

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