Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Sandy

http://www.housingwire.com/2011/05/09/half-of-fannie-mae-mortgages-registered-in-mers-name?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29


"Federal regulators found several problems in the MERS system during their investigation last year. The company did not invest enough resources, staff or training to properly handle rising caseloads and failed to implement the needed oversight, according to a study. MERS signed consent orders with regulators in April pledging to make corrections.

But the real risks to Fannie come from potential new rules regulators or lawmakers may enact. Foreclosure costs increased dramatically in the first quarter as home values continued to fall, pushing loss severities at the already struggling mortgage giant up higher.

"If investigations or new regulation or legislation restricts servicers’ use of MERS, our counterparties may be required to record all mortgage transfers in land records, incurring additional costs and time in the recordation process," Fannie said in its filing."

I have always wondered why the banks dumped the loans into Fannie Mae. 

What does Fannie Mae mean by "our COUNTERparties?"


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Sandy
Sorry about the double post, the first one showed an error.

If a moderator can delete one, that would be appreciated. 
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Sandy wrote:

I have always wondered why the banks dumped the loans into Fannie Mae. 

 

Sandy a primary reason "why the banks dumped the loans into Fannie Mae" was that Fannie made the highly toxic transactions the banks, loaners, appraisers and irresponsible buyers had previously made look "legit." After all, here was an arm of government legitimacy (Fannie) involved in the process,,, 

- Insert large grain of salt-  (Sarcasm: Surely these dreadful transactions must be okay or a government supported entity like Fannie would have never supported these transactions.)<==Yeah right.

 

It worked.
The banks fooled us all. Even some of the most savvy investors in the world including the elite Hedge Fund investors were fooled. But the real  incongruities were committed elsewhere: The irresponsible Federal Reserve, extremely damaging less restricted “American Dream” regulations in circa 1999, and most importantly the previous culprits: The banks, loaners, “look the other way for a price” appraisers, corrupt loan officers who doctored loan applications, LIED to borrowers and yes, irresponsible buyers.

 

Not legal advice

Ed Cage  |  ecagetx@gmail.com

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