Fannie Fires 100+ For Fraud

[djd09]

Like I said, 15th Street street long and wide.

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that white paper written by king bunton is some read...where do private companies get the authority write laws

anyways the white paper on avm's is classical too...where is their version of USPAP

 

[Mejappz]

More trouble for Fannie. Trust me, this will be massive when it's all said and over. Once the can of worms is open, it's over.

Indian American Congressman Suhas Subramanyam has launched an enquiry, on Wednesday, into last week’s mass firings of dozens of predominantly Indian American employees at Fannie Mae for claims of alleged unethical conduct and fraud; sending a letter to William Pulte, director of the federal housing finance agency, and Priscilla Almodovar, president and chief executive of Fannie Mae, demanding answers and evidence.


The Federal National Mortgage Association, commonly known as Fannie Mae, is a United States government-sponsored enterprise and a publicly traded company.

Last week, Fannie Mae had fired around 700 employees, including many Telugu-speaking Indian Americans, most of whom live in Northern Virginia. They have denied wrongdoing and have claimed Fannie Mae did not conduct any sort of investigation into the alleged behaviour, a press release from Congressman Subramanyam’s office said. The Indian Americans lost their jobs due to alleged ethical violations in connection with the misuse of corporate grant programmes, according to reports.

“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behaviour and fired them without conducting a full investigation or providing evidence,” said Congressman Subramanyam, who represents the state of Virginia’s 10th Congressional district. “I have spoken with many of these employees in our community, and they deserve due process. Fannie Mae owes them, Congress, and the American people an explanation immediately.”

It has been reported that these employees were fired over contributions to certain Indian American organisations through Fannie Mae’s matching gift programme. According to Fannie Mae’s website, this programme allows employees to “double the financial impact of their eligible donations through our matching gifts programme up to a maximum of $5,000 annually.” The groups that many employees donated to were approved by Fannie Mae for inclusion in its gift-matching programme.

In the letter, Congressman Subramanyam highlights the employees’ years of experience and exemplary performance reviews at Fannie Mae and notes that the individuals were fired without notice and are almost exclusively Indian Americans. Additionally, some of the employees who were fired have claimed that they have not even donated to the organisations in question.

The Congressman is concerned that Fannie Mae has not fully investigated the alleged fraudulent behaviour and that simply donating to Indian American organisations or belonging to the Indian American community may have been used as the sole rationale for firing these employees. In his letter, the Congressman demands answers from Fannie Mae on whether and how they had investigated this alleged fraud, if employees were given the opportunity to provide clarification or corrective action, if employees were provided evidence of specific violations they were alleged to have committed, if donations to specific charities were used as the basis for termination decisions, and, lastly, if any employees who donated to these organisations were cleared of wrongdoing as part of the investigations.

MSN

 

[Non Sequitur]

I don’t need to lawyer up. I don’t know anything more than you about this situation and certainly don’t support fraud in any form in my personal or professional life.

Rumors of your leaving Fannie to complete 3-6 hybrids a day at $350-450 a pop were greatly exaggerated?

 

[Sadie]

More trouble for Fannie. Trust me, this will be massive when it's all said and over. Once the can of worms is open, it's over.

Indian American Congressman Suhas Subramanyam has launched an enquiry, on Wednesday, into last week’s mass firings of dozens of predominantly Indian American employees at Fannie Mae for claims of alleged unethical conduct and fraud; sending a letter to William Pulte, director of the federal housing finance agency, and Priscilla Almodovar, president and chief executive of Fannie Mae, demanding answers and evidence.


The Federal National Mortgage Association, commonly known as Fannie Mae, is a United States government-sponsored enterprise and a publicly traded company.

Last week, Fannie Mae had fired around 700 employees, including many Telugu-speaking Indian Americans, most of whom live in Northern Virginia. They have denied wrongdoing and have claimed Fannie Mae did not conduct any sort of investigation into the alleged behaviour, a press release from Congressman Subramanyam’s office said. The Indian Americans lost their jobs due to alleged ethical violations in connection with the misuse of corporate grant programmes, according to reports.

“It has been brought to my attention that Fannie Mae has accused hundreds of my constituents in the Indian-American community of fraudulent behaviour and fired them without conducting a full investigation or providing evidence,” said Congressman Subramanyam, who represents the state of Virginia’s 10th Congressional district. “I have spoken with many of these employees in our community, and they deserve due process. Fannie Mae owes them, Congress, and the American people an explanation immediately.”

It has been reported that these employees were fired over contributions to certain Indian American organisations through Fannie Mae’s matching gift programme. According to Fannie Mae’s website, this programme allows employees to “double the financial impact of their eligible donations through our matching gifts programme up to a maximum of $5,000 annually.” The groups that many employees donated to were approved by Fannie Mae for inclusion in its gift-matching programme.

In the letter, Congressman Subramanyam highlights the employees’ years of experience and exemplary performance reviews at Fannie Mae and notes that the individuals were fired without notice and are almost exclusively Indian Americans. Additionally, some of the employees who were fired have claimed that they have not even donated to the organisations in question.

The Congressman is concerned that Fannie Mae has not fully investigated the alleged fraudulent behaviour and that simply donating to Indian American organisations or belonging to the Indian American community may have been used as the sole rationale for firing these employees. In his letter, the Congressman demands answers from Fannie Mae on whether and how they had investigated this alleged fraud, if employees were given the opportunity to provide clarification or corrective action, if employees were provided evidence of specific violations they were alleged to have committed, if donations to specific charities were used as the basis for termination decisions, and, lastly, if any employees who donated to these organisations were cleared of wrongdoing as part of the investigations.

MSN

I saw that too, but there is no credible confirmation. The article I read said some of the people fired worked for the charity, not Fannie. But it makes a better headline to say that 700 Fannie employees were fired.

 

[Mejappz]

A member of Congress is asking for answers from Freddie Mac about how one of its former employees managed to simultaneously work for the mortgage giant, work as a high-ranking D.C. government official and serve on the Falls Church City ?

Congressman urges investigation into how ex-DC official's job at Freddie Mac went unnoticed

A member of Congress is asking for answers from Freddie Mac about how one of its former employees managed to simultaneously work for the mortgage giant, work as a high-ranking D.C. government official and serve on the Falls Church City Council.

www.nbcwashington.com

 

[glenn walker]

They call it multi tasking...many working two or more jobs at the same time I know a guy in Washington that works a State Job who also does another virtual job. Freaking out because State talking about him having to come to office 3 days a week.

I have no doubts thousands gaming the system. Hell he says if they ever find out his job takes 2 hours a day and he sat in his cubicle just doing nothing the other 6 hours. I asked what about your boss and he laughed and said everyone covers each others backs. He's 58 and says there going to have to fire him or he will stay until he's dead....lol

 

[sputnam]

Unethical conduct is illegal for appraisers; it should also be illegal for those that write our rules and 'police' us. I'm sure its not but it should be.

It's not illegal... even for appraisers.. unless you work in a State that has adopted USPAP as law. And that's true of any set of ethics... not illegal unless there is law that says it is. It's true that often there is overlap between ethics and law... but not always.

 

[Bobby Bucks]

I don’t need to lawyer up. I don’t know anything more than you about this situation and certainly don’t support fraud in any form in my personal or professional life.

Forgive me for my lack of deference, but Fannie has a sordid history that is well established. One only need to begin with Franklin Raines and work forward. They have a major public relations problem and the overwhelming majority of our industry holds them in low regard for good reason. And now we're expected to embrace experimental, low paying, high risk hybrid products, no thank you.

 

[Mark K]

It's not illegal... even for appraisers.. unless you work in a State that has adopted USPAP as law.

I do. I think many others do also but I don't know the exact number.

 

[Elliott]

[td] *** FOR IMMEDIATE RELEASE ***​ WHERE TO LOOK FOR MORE FRAUD AT FANNIE MAE VENTURA, Calif. (April 11, 2025) – Fannie Mae reported this week it had fired more than 100 employees for unethical conduct, including facilitation of fraud. Expect more such news as the truth emerges about this organization’s activities over the past half-decade. At the beginning of the decade, under the protective camouflage of its federal conservatorship and Covid-19, Fannie began eliminating critical checks and balances in a radical experiment with U.S. taxpayers’ money and the U.S. economy. The mortgage giant began scrapping or weakening long-accepted underwriting safeguards like standard FICO scoring, title insurance, mortgage insurance, downpayments and appraisals. Investigators should mine the following areas for the presence of additional waste, fraud and abuse: • Schemes to coerce in-house analysts. Starting with Covid, Fannie gutted underwriting standards based on political exigencies and then coerced and incentivized a group of in-house analysts to magnify doubts about a class of loans in order to send repurchase demands to lenders. Fannie’s valuation system shunted a subset of the millions of loans purchased by the mortgage giant into a “high risk” pool. A Fannie Mae whistleblower reports that the in-house analysts were then coerced, at the threat of losing their jobs, into validating the automated system’s findings. If this is correct, Fannie’s vendors were also likely pressured or incentivized to tweak automated valuation models. A Maryland task force looking into automated valuation models at the mortgage giants was stonewalled when it began asking questions about Fannie Mae’s automated valuations. Expect considerable fraud and abuse in this area. • Fraud within “Special-Purpose Credit Programs.” Such programs provide money to particular borrowers who lack adequate down payments for homes or the ability to cover mortgage closing costs. Many Special Purpose Credit Programs were spawned by the mortgage giants under Biden-era appointees for political purposes. These programs have historically resulted in racial targeting and so-called affinity schemes. Last month, Federal Housing Finance Agency Director Bill Pulte ordered Fannie and Freddie to terminate all Special Purpose Credit Programs. Widescale fraud may have already been found with these programs. • Mischief with loan-level price adjustments. Fannie Mae and Freddie Mac impose a loan-level pricing adjustment which is a fee charged to mortgage borrowers who opt for a conventional mortgage. The fee is supposed to be based on the borrower’s level of risk. The fee can vary depending on factors such as the borrower’s loan-to-value ratio, credit score, type of occupancy, and the number of units in the property. Typically, borrowers pay this fee in the form of higher mortgage interest rates and or fees. These are assessed based upon certain eligibility or other loan features submitted in Fannie Mae’s system. Because it is not well understood by borrowers, all kinds of mischief is possible with this fee. Expect to see sweetheart deals, kickbacks, padding and special waivers of this fee. • Mischief in Fannie’s funding of home repairs and closing-cost reimbursements. Fannie Mae offers something called HomeStyle Renovation loans, which allow borrowers to finance renovations and improvements while also covering closing costs. The loan covers the cost of home repairs and renovations, including materials and labor. Additionally, Fannie Mae provides expense reimbursement for servicers related to loan servicing, such as for advances for taxes, insurance, and other out-of-pocket expenses. Expect to see considerable fraud in this area. • Potential sweetheart deals with pre-approved law firms that may have been greenlighted to provide lucrative attorney-opinion letters to replace standard title insurance on federally sponsored mortgages. • Potential manipulation of executives at the Fair Isaac Company in the dilution of its publicly traded company’s FICO score and the creation of diluted versions of the gold-standard score. • Mischief by Fannie’s internal employee affinity groups. In their mission statements, these groups of Fannie Mae employees have pledged to join hands with vendors and outside actors, including borrowers. How do we know this? This was in their respective mission statements in a Web page that has since been removed. The page was here. • Irregularities with credit-default swaps. Fannie has been dumping risk into capital markets by peddling junk-rated credit default swaps in a dangerous and unregulated insurance scheme. (Think insurer AIG’s spectacular collapse and federal bailout in 2008.) The unregistered instruments are called “CRTs.” The practice is relatively new for Fannie, which has found itself propping up an over-the-counter marketplace for the synthetic derivatives. • In 2022, Fannie Mae reached a $53 million settlement with a nonprofit aligned with the Biden administration’s U.S. Department of Housing and Urban Development. The payment to the National Fair Housing Alliance may not have been vigorously opposed by the mortgage giant. The lawsuit and settlement may simply have been an elaborate, politically directed payout to a nonprofit that acts as HUD’s private enforcement arm, scout and rainmaker. • Fraudulent mortgages to “credit-invisible” borrowers. In January 2023, under the pretext of helping the underserved, Fannie announced it had tweaked the knobs and dials on its impenetrable underwriting algorithm to fit so-called “credit invisibles” for mortgages. These included borrowers who had never held so much as a gasoline card, a Kohl’s card and those who have become elderly and infirm. In a press release in 2022, Fannie cited findings that show millions of people in the U.S. are “credit-invisible.” Expect to see considerable fraud and abuse in this loan pool. • Fannie and Freddie have been making bad loans and then dumping the notes for pennies on the dollar to venture capital firms and crony nonprofits. The buyers are not putting foreclosed homes back on the market. The homes are instead being rented out. The restrictions in fine print placed on the purchasers of Freddie and Fannie’s nonperforming loans offer a big clue as to what the twins are up to in hiding botched mortgages. Since Covid, Fannie alone has auctioned off pools of nonperforming and so-called delinquent “reperforming” loans. The twins have been quietly purging the mortgages from their books or holding the loans under misleading labels, such as “reperforming.” ​ ​ ​

[/td]