Buy this domain.
Washington Mutual Home Appraisal Probe Grows, as Fannie Mae, Freddie Mac Subpoenaed | cialis online

Washington Mutual Home Appraisal Probe Grows, as Fannie Mae, Freddie Mac Subpoenaed

AddThis Social Bookmark Button

Washington Mutual, the country’s largest savings and loan, is being targeted by the New York State Attorney General’s office for allegedly inflating the appraisals of houses for which it wrote mortgages. Fraudulent appraisals have left thousands of homeowners in that state with mortgages they can’t afford, and such schemes have been blamed for the turmoil in the current housing market. Yesterday, Andrew Cuomo, the New York Attorney General, said he was expanding a probe of mortgage fraud to focus on companies that packaged home loans and that were later resold to investors.

Washington Mutual and other lenders often write mortgages and then sell them as a group to investors. Last week, Cuomo accused Washington Mutual of pressuring an appraisal company to overvalue thousands of homes. Those mortgages were then sold to investors, who Cuomo says were misled about the value of the properties.

Fannie Mae and Freddie Mac, two companies created by the federal government to expand home ownership, may have been among the investors allegedly misled by Washington Mutual. Both Fannie Mae and Freddie Mac purchase mortgage loans in bulk, and this year alone, Washington Mutual sold $24.7 billion in loans to Freddie Mac and $7.8 billion more to Fannie Mae. Yesterday, Cuomo announced that his office had subpoenaed both companies about their dealings with Washington Mutual. At a news conference, the New York Attorney General said that both Fannie Mae and Freddie Mac had also agreed to allow an independent examiner to analyze their dealings with Washington Mutual.

For its part, Washington Mutual has denied Cuomo’s allegations. However, the company said that it had launched an internal investigation into its lending practices. Representatives for both Fannie Mae and Freddie Mac also said they believed that they had good standards for evaluating the accuracy of appraisals.

Cuomo said yesterday that several other large mortgage lenders were also being investigated by his office, but he would not name them. The ultimate goal of this investigation and others like it is to improve standards in the mortgage lending industry. During the housing boom, many lenders wrote mortgages for properties that were appraised well over their true value. There was little regulation, and lenders required scant documentation to justify the mortgages they wrote. Now the collapse of the housing market has left many homeowners with loans they can’t afford and their mortgages far exceed the value of their homes. Investors who buy mortgages are now finding that their investments were never worth what they were led to believe.

The collapse of the housing market has since rippled through the economy. Stocks are down 18% for the year and the turmoil has prompted many investors to sell off US currency. As a result, the dollar is now at its lowest levels in 30 years.

« »

Leave a Reply

You must be logged in to post a comment.




Defective Johnson & Johnson Depuy ASR Hip Implants

The Johnson & Johnson Depuy ASR Hip Implant is suppose to last 15 years, but can fail in only a few years after surgery. Victims with faulty hip implants endure excruciating pain, pain in the groin, death of tissue in the hip joint and loss of surrounding bone. GET ALL THE FACTS NOW! CLICK HERE!

CAT Scans Radiation Exposure

If you had a CT or CAT scan and now have a band of missing hair, skin reddening or any other problems possibly related to a radiation overdose, you may have been exposed to much radiation due to incorrect settings on these machines. CONTACT US TODAY!

Water Contamination From Fracking

Hydraulic Fracturing of Fracking a way to extract natural gas from shale is contaminating water supplies across the country. Get the facts to keep your drinking water safe for your family.

Overexposure to PCBs

Many people unknowingly have been exposed to high levels of PCBs. Recently 3 schools in NY City were found to have dangerous levels of PCBs throughout. Many workers for Monsanto, General Electric, and Westinghouse were exposed to high levels of PCBs. PCBs are a dangerous toxic substance that doesn't break down easily and can cause chloracne, bleeding and neurological disorders, liver damage, spontaneous abortions, malformed babies, cancer, and death. GET THE FACTS!
Overexposure to

Great Photography

Tallis Photo, the number one photographer for great corporate, wedding, and special occasion photos. CONTACT US TODAY!

Poligrip Lawsuit

Super Poligrip or Fixodent May Cause Nerve Damage. 800-LAW-INFO

Personal Injury Lawyer Nassau County

If you or someone you love was injured CONTACT US TODAY!

Nursing Home Blog

When a loved one is abused at a nursing home, it is time to take action. STOP nursing home abuse!

Car Accident Lawyer Nassau County

If you or someone you love was injured in an auto accident CONTACT US TODAY!

Suffolk County Auto Accident Lawyer

If you or someone you love was injured in an auto accident in Suffolk County, NY CONTACT US TODAY!

Don't Be Denied Veterans Benefits

If you or someone you love was denied veterans benefits CONTACT US TODAY!

Oil Rig Spills Lawyer

Oil Rig Spills harm the environment and cause heavy losses to coastal game and fishing industries, as well as a loss of waterway usage, resulting in a loss of income to individuals and businesses, and a loss of beach front usage. Don't let a spill cause you harm, CONTACT US TODAY!

Whistle Blower

Stand up and say what you think is right. See something, say something.