At some peril of offending those who have already posted a link to the story in another less precisely titled thread, I am initiating another new thread to discuss the article written by Gretchen Morgenson and published in today's edition of the New York Times. I think that we owe longtime MSFraud Forum contributor Nye Lavalle a somewhat better and clearer introduction than that given in the earlier thread.
The article is:
NY Times: "A Mortgage Tornado Warning, Unheeded" (February 5, 2012), by Gretchen Morgenson
Nye Lavalle will be already well familiar to Forum veterans. Those browsing through early Forum threads will find him to be a regular contributor on a variety of mortgage fraud related topics.
Those amongst Nye's correspondents during the years he posted more regularly will also recall receiving regularly copies of e-mail messages authored by Nye and sent to sometimes very large distribution lists of company officers and directors, as well as regulators and supervisors.
When I first found the MS Fraud Forum and began to explore its posts to obtain a better understanding of mortgage foreclosure for the purposes of my own foreclosure case, Nye was amongst the Forum regulars who first acquainted me with Mortgage Electronic Registration Systems, Inc., which had emerged in the decade following my own departure from the mortgage industry.
Nye acquainted me with enough basic information to orient my own research. After learning much, much more, I began to post information to the Forum myself to give back to a resource that had been helpful to me.
I would encourage each of you to carefully read Gretchen's article. Even more importantly, be sure to read the Baker & Hostetler, LLP, "Report To Fannie Mae Regarding Shareholder Complaints By Mr. Nye Lavalle".
The significance of the report is readily apparent both from a reading of Gretchen's article, as well as a reading of the report itself.
Nye Lavalle rattled Fannie cage enough that they engaged a law firm to study his allegations. The law firm reported back that some of the allegations appeared to have merit, but Fannie then proceeded to simply IGNORE these issues!