It’s the nature of every business to want to make a profit, but there comes a time when the price is simply too high. The foreclosure and subsequent economic crisis is that price. There were reportedly many red flags and warning signs that pointed to the crisis, and new reports suggest that the most important parties ignored those signs.
Many families, especially in Florida, have lost their homes to foreclosure. We now know that many homes have been lost wrongfully. New reports indicate that Fannie Mae and other informed parties ignored warning signs of foreclosure abuse. Fannie Mae reportedly continues to rely on a Florida foreclosure firm that’s been proven to have abused the system.
A little history: From 1997 Fanny Mae developed a relationship with a network of law firms who were paid based on the number of foreclosure cases they settled. Critics allege that these firms were basically paid to be foreclosure factories. Not only have many people lost their homes because of it, but the overall economy has taken a big hit as well. Critics are challenging Fannie Mae’s reliance on foreclosure firms that have supposedly done wrong by homeowners and, therefore, been dropped by Freddie Mac.
Knowledge is power. That saying is true for any situation and anyone. Living by that motto is of utmost importance now, being that so many American consumers are struggling to get back on their feet. In order to ensure a healthy housing market and economic future for us and our kids, federal agencies need to step up their game with honesty.
The Palm Beach Post: “Fannie Mae sticking with fired Florida law firm,” Kimberly Miller, Oct. 5, 2011