Fannie Mae Ignored Robo-Signing Abuse in Miami Foreclosure Cases

A recent article in The Palm Beach Post reports that Fannie Mae, the federal mortgage giant, was told five years ago that its attorneys were filing robo-signed documents, but it chose to do nothing about it.

Well, isn’t this super. While the government has come out condemning these actions by banks and setting up unsuccessful programs to help homeowners, it knew all along this was going on in foreclosures in Miami and elsewhere.
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They hypocrisy in government is amazing to Miami foreclosure defense attorneys, who have seen banks attempting to strip away people’s homes through robo-signed documents, other faulty paperwork and an unwillingness to negotiate despite all of their shady actions.

Homeowners must be willing to fight back against foreclosure in cases like these. Banks try to bully homeowners, but end up getting kicked in the teeth when homeowners fight back and hold them accountable for their actions. Many homeowners have been able to live — rent free — for years in houses where banks haven’t been able to prove who actually owns the house because of their own ineptitude.

And the same goes for the federal government. Fannie Mae — created after the Great Depression to keep the secondary mortgage market going — has now been caught red-handed.

According to an inspector general report, an outside law firm Fannie Mae hired to investigate allegations of wrongdoing confirmed that “unlawful” practices were occurring. The report found that attorneys hired to try to take away people’s homes were signing inaccurate documents to move them through the foreclosure process faster. Despite learning about this fact, Fannie Mae did nothing to improve the oversight of these firms working for the Federal Housing Finance Agency, The Palm Beach Post reports.

Fannie Mae and Freddie Mac buy loans from banks and flip them to investors, providing a guarantee to cover losses if loans default. The mortgage giants were taken over by the government in 2008. Plantation-based David J. Stern wasn’t mentioned in the report but was the largest law firm used by Fannie Mae in Florida cases. The firm closed last year after allegations of robo-signing surfaced. More than 100,000 cases statewide were abandoned after the firm shut down.

Employees told Fannie Mae that notary stamps were passed along and used by people not certified as notary publics, signatures were forged, mortgage assignments were created after foreclosure judgments were entered and employees hid filed from auditors seeking to check on the process.

As of June 30, Fannie Mae had a principal balance of $180 billion in unpaid home loans in Florida alone. Roughly 12 percent of the state’s Fannie Mae loans are delinquent.

The bottom line here is that law firms hired by the government and banks to take away people’s homes, as well as loan servicers, were using robo-signed and unauthorized means to steal away people’s homes without due process.

What does the government do in response? Look the other way. So, people have lost their homes, had a judge sign off years ago, and the bank sold it at auction all while using false documentation. And that’s fair?

Our Miami foreclosure defense lawyers vow to do everything possible to fight for a Miami homeowner’s property. Bringing up evidence of robo-signed paperwork, missing documentation and illegal practices is a good start in saving your home from foreclosure in Miami.

If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

More Blog Entries:

Former Countrywide Employees Say Company Covered Up Fraud in Miami, U.S.: September 24, 2011
Banks Don’t Learn Their Lessons — Still Using Robo-Signed Documents in Miami Foreclosures: September 13, 2011
Additional Resources:

Fannie Mae ignored robo-signing abuses in Florida foreclosures, investigation finds, by Kimberly Miller, The Palm Beach Post