June 21, 2007

FLASH: Fannie Mae sees more mortgage fraud. THIS JUST IN: Water is wet, salt is white, sky is blue

ob·vi·ous (ŏb'vē-əs) adj.
Easily perceived or understood; quite apparent.

The millions of Americans facing foreclosure on their homes aren't the only victims of the housing market bubble. There are also many consumers who have been duped into participating in schemes to buy properties and sell them at inflated values.

Mortgage finance company Fannie Mae (FNM - Cramer's Take - Stockpickr - Rating) has seen a big increase in mortgage fraud over the last two years, particularly in the Midwest.

"An alarming number of Fannie Mae's recent investigations have found that otherwise honest consumers and real estate professionals are fooled into conspiring to commit mortgage fraud." William Brewster, the housing agency's director of anti-fraud initiatives, said in prepared remarks delivered at a Federal Reserve hearing on subprime lending last week.

"Real estate agents, mortgage brokers, lenders, appraisers and title agents must become better educated about common mortgage fraud schemes, and not inadvertently conspire with the perpetrators of those schemes," Brewster said.


Anonymous said...

This is total nonsense surely mortgage fraud like this is very isolated. You know California, Florida,Arizona, Las Vegas, Colorado. You know isolated to about half the damn population of the country. Where were these brilliant a$$holes 3 years ago.

I would suggest if there is a bailout everybody with a mortgage mail in the keys.


Anonymous said...

Uh, Punky Brewster, how can people be "fooled into conspiring to commit mortgage fraud?"

The common law elements of fraud are representation of a material fact, falsity, scienter, deception, and injury. By definition, you cannot commit fraud without knowing it!

Why am I not suprised that the spokesman for Fat Fanny is a condescending dickhead?

Anonymous said...


Anonymous said...

Perhaps, bank lenders should be required to attend closings.

Anonymous said...


Anonymous said...

Fleece a sheep,it's ok.They also deserve it.

Anonymous said...

Mealy-mouthed Brewster is a spineless idiot! He was and remains a very big part of the Mortgage Fraud problem! He knew years ago about the fraud and failed to take any action. He is just as guilty as the Fraudsters. Him by ommision, Them by commission. The result? Once the Fraudsters figured out Lazy Brewster wasn't going to do a damn thing, they escalated the Fraud! Classes were taught on it. The Fraudsters bragged about it. They got so brazen they threatened the honest ones who refused to participate, then got them fired. They offered bribes. They went out and got restraining orders against those that turned them into to Brewster, calling it harasment for having their fraud exposed and reported. Or maybe Brewster wasn't lazy. Brewster probably took bribes as he years ago conviently just stuck his head in the sand. Brewster's to blame for the the Housing Crash!

Anonymous said...

Right, and I guess the THOUSANDS of mortgage fraud referrals Fannie has made to law enforcement over the past several years is ALSO an indication that they are more to blame than lax GOP regulatory oversight. Great arm-chair analysis!