The Feed

Shocker: Fannie and Freddie Potentially at the Center of the Foreclosure Mess

Raising questions for the first time about the role of Fannie Mae and Freddie Mac in the unfolding mortgage-foreclosure crisis, the two government-owned giants are reviewing the work of a Florida law firm they recommended to process foreclosures.

Until now, Fannie and Freddie have been largely bystanders in the widening foreclosure scandal, because they don’t directly service loans, or handle day-to-day management of mortgages. But their use of so-called foreclosure mills, law firms that specialize in quickly processing thousands of foreclosures on behalf of lenders, is dragging the companies into the latest crisis.

Last Friday, Freddie told mortgage servicers to stop sending cases to the Law Offices of David J. Stern, of Plantation, Fla. Fannie followed suit on Monday. The law firm has been at the center of recent allegations by the Florida attorney general’s office, which released a deposition of a former law-firm employee. In the deposition, the employee alleged the firm routinely forged notarized documents amid closed-door screaming matches that broke out because files weren’t moved fast enough.

Most Popular

Music

Van Morrison Sings for the Voiceless

Van Morrison knows what censorship means even if Internet mobs don’t. He has released three new songs, “No More Lockdown,” “As I Walked Out,” and “Born to Be Free,” that movingly speak against the new autocratic culture that too many people -- especially trusted media figures, particularly ... Read More
Music

Van Morrison Sings for the Voiceless

Van Morrison knows what censorship means even if Internet mobs don’t. He has released three new songs, “No More Lockdown,” “As I Walked Out,” and “Born to Be Free,” that movingly speak against the new autocratic culture that too many people -- especially trusted media figures, particularly ... Read More
Economy & Business

NASDAQ against Shareholder Rights

The function of a stock exchange is to provide an orderly market for the trading of securities. As part of that, a stock exchange will generally insist that a listed company will agree to meet certain financial disclosure requirements designed to ensure that investors have sufficient information with which to ... Read More
Economy & Business

NASDAQ against Shareholder Rights

The function of a stock exchange is to provide an orderly market for the trading of securities. As part of that, a stock exchange will generally insist that a listed company will agree to meet certain financial disclosure requirements designed to ensure that investors have sufficient information with which to ... Read More