Lawmakers to Fannie Mae: Why are you using lawyers 'accused of regularly engaging in fraud' in foreclosures?
Members of Congress called on Fannie Mae to stop working with "foreclosure mills" under investigation for document fraud.
"Why is Fannie Mae using lawyers that are accused of regularly engaging in fraud to kick people out of their homes?" Reps. Alan Grayson, Barney Frank and Corrine Brown wrote in a letter to Fannie Mae Chief Executive Michael J. Williams on Friday.
Four law firms are under investigation by the attorney general of Florida and "several of the busiest of these mills" work with Fannie Mae, they said. "Fannie Mae seems to specifically delegate its foreclosure avoidance obligations to lawyers who specialize in kicking people out of their homes."
A Fannie Mae spokeswoman declined to comment except to say the company will respond to the questions raised.
Here's the letter.
Ariana Eunjung Cha
| September 24, 2010; 1:50 PM ET
Categories: Congress, Housing
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