Fannie, Freddie want servicers to assume risk

[tridim]

BAM! :nuke: :nuke: :nuke:

This is a big one.

Oct 22 (Reuters) - Fannie Mae and Freddie Mac are in talks with U.S. title insurers to require mortgage servicers to assume insurers' liabilities if there are legal challenges to foreclosures on homes whose mortgages Fannie and Freddie underwrote, a source familiar with the matter said.

Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), which are controlled by the U.S. government, together own or guarantee more than half of the $11 trillion of U.S. home mortgages.

Allegations that some banks used shoddy paperwork in processing foreclosures has sparked a wave of lawsuits, and more borrowers are expected to challenge foreclosures in court.

The disputed foreclosures could create a headache for title insurance companies, which protect homeowners against the risk of a prior owner claiming to still have a legal right to the property.

Fannie Mae and Freddie Mac are negotiating with the American Land Title Association, the trade group for title insurers, to ensure that any legal costs associated with faulty foreclosure paperwork by loan servicers are borne by the servicers, the source said. Both Fannie and Freddie declined to comment.

Much More: http://www.reuters.com/article/idCNN1916427920101022?rpc=44

Fannie and Freddie are wising up fast. I'd like to think my case ignited this story, but I'm probably just one of thousands. My servicer claims Fannie is the investor in my mortgage, but my address isn't on Fannie's books. A similar address is, but Similar isn't legal. Fannie invested in a non-existent mortgage. I've checked, the address doesn't exist at all.

[DJ13]

1. This indicates the government position that there was little fraud isnt working

Time to CYA before the SHTF.

[tridim]

2. I think this article is the SHTF friday news dump.

The implications are massive.

[Taverner]

3. Pretty soon we'll be hearing "WHITE HOUSE CAUSES FANNIE AND FREDDIE TO FAIL"

Obama wants your HOUSE too!!!

[tridim]

4. Probably, but it is now crystal clear that the fraud started at the servicing banks.

All of them.

Collusion to defraud?

[dixiegrrrrl]

5. RICO.

[dixiegrrrrl]

6. You want to kill this monster - the banks that abused America?

Then there is only one question to answer: Are you actually underwater - that is, functionally bankrupt?

If the answer is "Yes" then you need to head down to a Bankruptcy Attorney right now, find out whether you live in a state where the bankruptcy court will force the prove-up of debts to be done according to the black letter of the law, and if that's true, and you qualify for Chapter 7, stick it to them.

This may not work for Chapter 13, and those wonderful banks lobbied hard to change the law so that you can't choose which way you go any more to anywhere near the degree you used to be able to.

Incidentally, as was pointed out to me by Steph over at FedUp, if you're unemployed or under-employed you need to do this NOW, because it dramatically changes your standing with regard to qualifying for Chapter 7 rather than Chapter 13!

But for many people today, especially those in the lower-middle class and under who have been far-more seriously preyed upon by the financial industry than those of ghttp://market-ticker.org/akcs-www?post=170008reater means, this avenue remains available - and if the bank that allegedly holds your mortgage can't prove it up, well..... welcome to the ownership society - for real this time.

http://market-ticker.org/akcs-www?post=170008

Denninger is saying that if the courts in your state will not let you sue the banks that do not even have your note,
then use bankruptcy courts, which will also force the banks to produce the note or else they cannot charge you for the loan.