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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h gosh
Taxpayers may pay legal bills for mortgage execs

AP Photo
AP Photo/Pablo Martinez Monsivais


WASHINGTON (AP) -- When the government took over mortgage giants Fannie Mae and Freddie Mac, taxpayers inherited more than just bad debts. They're also potentially on the hook for tens of millions of dollars in legal fees for the executives at the center of the housing market's collapse.

With the Justice Department investigating companies involved in the mortgage and financial meltdown, executives around the country are hiring defense lawyers. Like many large companies, Fannie and Freddie had contracts promising to cover legal bills for their executives.

When the Treasury Department delivered a $200 billion bailout to Fannie and Freddie, that obligation passed to the government, which may find itself paying for the lawyers defending the executives against the government's own prosecutors.

"Who'd have thought we might be on the hook for paying the defense costs when we're also paying the prosecution costs?" said Doug Heller, executive director of Consumer Watchdog, a Santa Monica, Calif.-based group that has been critical of the financial bailout packages. "To defend the economy from the havoc that's been created, we're going to defend the havoc creators?"

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I am (almost) speechless.  


Who was it that said everything at Freddie was copasetic?. . . Oh, wait - I remember now, it was Barney Frank.  Maybe he should kick in a few bucks to help cover the boys and girls legal expenses.


Only in America. 

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O -
This whole thing make me sick.

Hate the GOP? Blame Orange County - The Daily Beast
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tired and tattered

You think maybe they should have been investigated BEFORE they were given all this money?

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