Watchdog: Fannie, Freddie Knew of Robo-Signing in 2003
WASHINGTON -- 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 warned Fannie Mae of alleged foreclosure abuses in 2003, Steve Linick, the inspector general for the agency that regulates Fannie, said in a report released Tuesday.
