CUNA Calls For Fannie Mae Investigation

Posted by Orb Staff on December 28, 2009 No Comments
Categories : Residential Mortgage

The Credit Union National Association (CUNA) has requested U.S. Department of the Treasury General Counsel George Madison ‘undertake an expeditious investigation into a troubling matter that involves the fraudulent conveyances of residential mortgage loans’ to Fannie Mae.

CUNA has charged that Fannie Mae did not handle mortgage fraud investigations ‘in a manner that is appropriate for the federal government.’ CUNA has also faulted the Federal Housing Finance Agency (FHFA), Fannie Mae's regulator, for not requiring the government-sponsored enterprise to take any action on this issue.

CUNA cited the case of CU National/U.S. Mortgage, a third party mortgage processing specialist that ‘defrauded at least 26 credit unions’ over a number of years ‘by conveying the loans to [Fannie Mae] without the authorization of the credit union and retaining the proceeds.’ CUNA adds that Fannie Mae ‘has not offered, nor has the FHFA required them to offer, a settlement’ to defrauded credit unions.


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