Lawmaker Seeks FHFA Data Regarding GSE Legal Fees

Posted by Orb Staff on November 23, 2010 No Comments
Categories : Residential Mortgage

7177_11-23_photo Lawmaker Seeks FHFA Data Regarding GSE Legal Fees Rep. Randy Neugebauer, R-Texas, the deputy ranking member of the House Financial Services Committee, has requested that the Federal Housing Finance Agency (FHFA) provide accounting on the legal bills incurred by the government-sponsored enterprises (GSEs).

‘Today, I sent a letter to FHFA Acting Director [Edward] DeMarco asking him to provide a full and clear accounting of taxpayer dollars being expended for lawyer's fees and related legal activities for Fannie Mae and Freddie Mac, including former executives who are the subject of ongoing class-action lawsuits,’ said Neugebauer. ‘Now that the taxpayers are on the hook for the operations of Fannie and Freddie, I want to be certain that their money is being used in the most responsible manner possible. Among other things, I am concerned that the taxpayers are stuck picking up the tab for ongoing legal counsel for the very executives who drove the GSEs into conservatorship in the first place.’

Neugebauer specifically requested information relating to former Fannie Mae executives Franklin Raines, Timothy Howard and Leanne Spencer. He also asked for the disclosure of the amount of legal expenses spent on firms that are being investigated in the robo-signing controversy, particularly the David J. Stern law firm in Plantation, Fla.

‘In the report,’ Neugebauer wrote to DeMarco, ‘I would like a breakdown of each law firm that has provided legal representation to the GSEs, the total dollar amount for legal services rendered to each firm, a description of the type of legal service or the reason for legal representation, and a dollar amount for continual or ongoing legal services through retained counsel. I would like to have the report for my review no later than Dec. 31, 2010.’

The FHFA has not publicly commented on Neugebauer's request.

SOURCE: Office of Rep. Randy Neugebauer

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