Democrats refused to regulate these two GSE’s before the financial crisis and failed to regulate them with the Dodd-Frank bill. Obama raised their debt-limit to $400 billion, which puts the taxpayers on the hook, on top of refusing to appoint an Inspector General to watch the money they were receiving.
Now we learn that these two corrupt GSEs knew about the robo-signings and did nothing about it.
From Business Insider:
Mortgage giant Fannie Mae knew about allegations of improper foreclosure practices by law firms in 2003 but did not act to stop them, a government watchdog says.
Similar allegations are the subject of a probe by state attorneys general into how lenders and law firms ignored proper procedures to handle a crush of foreclosure paperwork.
An unnamed shareholder warnedFannie Mae of alleged foreclosure abuses in 2003, the inspector general for the agency that regulates Fannie says in a report being released Tuesday.
Fannie Mae responded by hiring a law firm to investigate the claims in 2005. The law firm reported in 2006 that it had found foreclosure attorneys in Florida “routinely filing false pleadings and affidavits.”
Fannie officials said they told a government official about the law firm’s findings in 2006. That unnamed official, who now works for Fannie’s regulator, the Federal Housing Finance Agency, said he couldn’t recall the conversation, the report says.