Fannie Mae calling past clients

Dud? Joined: 11 Sep 2009 Posts: 2

2 weeks ago one of my past clients was call by a Fannie or Freddie investigator asking a bunch of questions about that file.

Does any one know why they are calling people now to investigate?

Wrecking crew Joined: 13 Feb 2008 Posts: 1702

Even performing loans are being audited - not just fannie - just about anyone holding the paper. My understanding is that if there is any indication of fraud - they will investigate to the point of a buy back or accelleration - depending on where they suspect the fraud originated.

Lists are being made. Letters are being mailed. Prosecutions are happening on even small scale (under a million). Access to government loans being denied. Licenses being revoked.

If your client received a letter or a phone call I would be very concerned where they are going to point the finger.

Cherry Bomb Joined: 14 May 2009 Posts: 152 Location: Mars

Fannie, Freddie and the banks made the rules. All brokers did was originate loans based on the insane criteria (660 credit score No Doc). And now they want to hang the brokers out and make them responsible for bad loans. I just received a letter from CITI regarding a loan I brokered to ABM AMRO in 2006. The loan defaulted last year and the buyback letter CITI sent me said that certain items were not in the file. I sent them everything they said the file was missing or that there was a discrepency. One item is that they said the 1003 showed the occupancy as NOO but the automated underwriting findings showed O/O. I sent them the clear to close and the lock in confirmation that showed all was consistant. Guess what, the banks are altering the loan files in hopes the brokers don't have older files in order to fight the buy back request.
Keep your files because there is a new war ready to start. I am half tempted to go to the NJ Dept of Banking and my county prosecutor to investigate CITI. If I get one more fradulent buy back letter I will do just that.

Dud? Joined: 06 Aug 2009 Posts: 16

liberal slayer wrote:

Fannie, Freddie and the banks made the rules. All brokers did was originate loans based on the insane criteria (660 credit score No Doc). And now they want to hang the brokers out and make them responsible for bad loans. I just received a letter from CITI regarding a loan I brokered to ABM AMRO in 2006. The loan defaulted last year and the buyback letter CITI sent me said that certain items were not in the file. I sent them everything they said the file was missing or that there was a discrepency. One item is that they said the 1003 showed the occupancy as NOO but the automated underwriting findings showed O/O. I sent them the clear to close and the lock in confirmation that showed all was consistant. Guess what, the banks are altering the loan files in hopes the brokers don't have older files in order to fight the buy back request.
Keep your files because there is a new war ready to start. I am half tempted to go to the NJ Dept of Banking and my county prosecutor to investigate CITI. If I get one more fradulent buy back letter I will do just that.

We know the broker will be blamed. Ask yourself this. What were the circumstances of CITI taking the loan from ABN, and was it properly represented to CITI. Easy to blame the little guy when you have no idea what games were being played at levels above the little guy.

Thats ok. We all found out yesterday that Wall Street and hedge funds are like mobsters. So it ain't just the broker these days.

Dyn-o-mite! Joined: 22 Mar 2008 Posts: 271

Citi bought ABN AMRO's mortgage group a couple years ago to help grow their servicing portfolio. ABN AMRO ended up buying LaSalle bank who then had to sell off some of their assets as part of the deal.

Dud? Joined: 09 Nov 2009 Posts: 3

Look guys, all Fannie and Freddie are doing is fact-checking the loans that they purchased/guaranteed. If they find blatant fraud, misrepresentation, or any other issue in the loan file that is a critical error (the VOE was false, the VOD was false, the property was never occupied by the borrower, the stated income put on the 1003 by the broker was 5x their actual earnings, the property was flipped at the table, the borrower closed on 3 owner-occupied properties on the same day, etc) then they are simply calling the loan due as allowed to protect their interests.

I had my own broker shop in the heyday and am now a forensic underwriter for a FNMA contractor. Trust me, if you get a buyback request, there is a DAMN good reason for it. It is NOT a vast conspiracy where docs are altered and the evil big guys are having a white-out party. Liberal Slayer, 10 out of 10 LOS's default the occupancy type to owner-occ. If your loan file was delivered with a 1003 that said N/O/O, someone changed it to that and forgot to change it back. Sorry, you're busted.

Posted: Mon Nov 09, 2009 5:00 pm

You hit the nail right on the head. We only request the seller/servicers to repurchase when it's blatant misrep or non-disclosure. The investment quality of the loan has been altered.

The risk associated with an investment property and a primary residence is completely different. If you sold us an O/O but it was really a N/O (even if you didn't know about it)-you should have to buy it back.

There was probably more evidence showing the prop was an investment besides the application.....ie: Collection notes, DMV records, voter registration records or loan workout paperwork (income/assets docs or BK papers provided to loss mit for a loan mod that show the borr living somewhere else.)

Posted: Mon Nov 09, 2009 8:17 pm

liberal slayer wrote:

Fannie, Freddie and the banks made the rules. All brokers did was originate loans based on the insane criteria (660 credit score No Doc). And now they want to hang the brokers out and make them responsible for bad loans. I just received a letter from CITI regarding a loan I brokered to ABM AMRO in 2006. The loan defaulted last year and the buyback letter CITI sent me said that certain items were not in the file. I sent them everything they said the file was missing or that there was a discrepency. One item is that they said the 1003 showed the occupancy as NOO but the automated underwriting findings showed O/O. I sent them the clear to close and the lock in confirmation that showed all was consistant. Guess what, the banks are altering the loan files in hopes the brokers don't have older files in order to fight the buy back request.
Keep your files because there is a new war ready to start. I am half tempted to go to the NJ Dept of Banking and my county prosecutor to investigate CITI. If I get one more fradulent buy back letter I will do just that.

Quote:

I was the LO that would go over UW's heads if I did not get my way. I am the LO that is no longer an LO who closed over 400 loans a year for 5 years straight. When the best in the business start leaving the biz it's only a matter of time for your job to be gone!!! Trust me, guys like me will get the last laugh on arrogant, righteous underwriters like you.

The mortgage biz is about quantity NOT quality!!! Remember over 90% of outstanding mortgages are performing

Lib I do not sense the same bravado that oozed in this statement you made a short time ago...not breakin b a l l s...I just sense a bit of reduced confidence when you are considering the 2000 loans you wrote and rammed

Dud? Joined: 09 Jul 2008 Posts: 4 Location: St. Louis

The banks are nothing but fraud. Is what I've come to determine. If you try to tell the TRUTH your shut down by judges with their recusals. I've had two then the 3rd dismissed the case. How do u dismiss a recusal?

At any rate I've put together that the former company I used to represent on behalf of Chase and Citi (Nars) that one of the top 4/clsre mill attys is on the board of directors.

I've had pages of my complaints removed for telling who I am and exactly what I know. Their stealing homes or else I wouldn't be here typing about it!

Found out these guys on the board of directors is no other than Dave Kreisman/Gerald Schapiro. They've been popping up in cases right and left and i've got more info than one should need to have. Yet NO ATTY will HELP! If they did I'd have 50m or more in my pocket to make CHANGE for us hard working AMERICANS

Dud? Joined: 09 Nov 2009 Posts: 3

Quote:

"The banks are nothing but fraud. Is what I've come to determine. If you try to tell the TRUTH your shut down by judges with their recusals. I've had two then the 3rd dismissed the case. How do u dismiss a recusal?

At any rate I've put together that the former company I used to represent on behalf of Chase and Citi (Nars) that one of the top 4/clsre mill attys is on the board of directors.

I've had pages of my complaints removed for telling who I am and exactly what I know. Their stealing homes or else I wouldn't be here typing about it!

Found out these guys on the board of directors is no other than Dave Kreisman/Gerald Schapiro. They've been popping up in cases right and left and i've got more info than one should need to have. Yet NO ATTY will HELP! If they did I'd have 50m or more in my pocket to make CHANGE for us hard working AMERICANS"

Um, WHAT?