Quote:
Originally Posted by texas*princess
I'm not even going to pretend I know anything about that lending industry... but let's hypothetically say that possible fraud is found... can they take back the multi-million dollar severace (sp) packages that the top execs received?
The thing that rifles my feathers the most is that people are losing their jobs in this industry, people are losing their homes and this is causing some serious economic turmoil for other industries... and in the midst of it all, some losers who ran the company into the ground make a clean break with several million $$.
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Well, I do know about the Mortgage Industry and let me tell you, it's
1. Not easy to prove culpability, due to the numerous parties involved.
2. Not easy to determine the egregiousness of a case
3. Not easy to challenge "professional opinion"
4. And if you can prove the above, its nearly impossible to get your money back.
When I ran a fraud department and we were able to go after someone (people), you weigh out "do I want my money back" or "do I send them to jail". FBI always sends the fraudsters to jail, so lenders are stuck with an REO.
IF Fannie/Freddie finds fraud themselves, they throw a repurchase back on the Wholesaler (my company), who tries to recoup funds from a broker who rarely has the funds to purchase a loan back from us. We have found that indemnifications aren't worth the paper that it's signed on. Often, the broker has often gone out of business (or is in jail) before we come after them. Bottom line is that the GSEs are not always taking the hit on the loan -- the wholesalers do.
Sure, I think you could try to go after restitution from the former heads of Fannie and Freddie. Will you receive reimbursement? Did you Enron shareholders get any money back? Answer...doubtful.
Sorry for the rambling. This hits very close to home (and my paycheck)
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