Fannie Mae Didn’t Act on Early Evidence of Foreclosure Fraud, Impropriety

“Any attorney general, lawyer, bank director, judge, regulator or member of Congress who does not open their eyes to the abuse, ask pertinent questions and allow proper investigation and discovery is only assisting in the concealment of what may be the fraud of our lifetime.”  -Nye Lavalle

Quite possibly, you’ve never head of Nye Lavalle.  If you have, it probably wasn’t in connection with mortgage fraud–Lavalle’s initial claim to fame was in sports marketing.  But many years ago, Lavalle faced foreclosure on a family home.  The foreclosure didn’t arise because Lavalle couldn’t pay; rather, it was a result of the fact that he wouldn’t pay the $18,000 in fraudulent or erroneous fees associated with his account.

Unlike most victims of foreclosure fraud, Lavalle had the time, the resources and the know-how to dig in his heels and fight.  That didn’t save his house, but it did allow him to unearth evidence of forged documents and other improprieties that we now know to be commonplace.  Lavalle, however, put together his data in 2003.

The New York Times reported today on what happened–and,  more significantly, what didn’t happen–when Lavalle took that information to Fannie Mae.

Read the full story here: A Mortgage Tornado Warning, Unheeded