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Grayson Demands Fannie Mae Halt Work with Foreclosure Fraud Mills

Press Release

Location: Washington, DC

Congressman Alan Grayson (FL-8) advanced his efforts to stem the wave of illegal foreclosures in Florida today. In a sternly-worded letter sent yesterday, he demanded that Fannie Mae review the "disturbing dynamics" of the foreclosure process in Florida, and stop working with four purported foreclosure mills, until the Florida Attorney General completes his investigation into their alleged fraudulent actions.

In the letter, Congressman Grayson writes, "Why is Fannie Mae using lawyers who are accused of regularly engaging in fraud to kick people out of their homes?"

The letter to Fannie Mae, signed by Congressman Grayson, House Financial Services Committee Chairman Barney Frank and Representative Corrine Brown (FL-3), requests that Fannie Mae review its use of four firms in Florida, which handle 80% of all foreclosure cases in the state.

In the letter, Congressman Grayson writes, "At the very least, we would encourage you to remove foreclosure mills under investigation for document fraud from Fannie Mae's Retained Attorney Network. We also believe that Fannie should have guidelines allowing servicers to proceed on a foreclosure only when its legal entitlement to foreclose is clearly documented."

Earlier this week, Congressman Grayson exposed a foreclosure case in Jacksonville, which a judge dismissed with prejudice. In the ruling, the judge excoriated Chase, WAMU, and Shapiro and Fishman for document fraud on the court. In the case, Chase attempted to foreclose on a home, when it did not actually hold the mortgage note. You can read the 6-page ruling here.

The Congressman has written the Chief Justice of the Florida Supreme Court, urging the Court to halt all foreclosures involving the foreclosure mills. You can read that letter here. The Congressman's office confirmed that the Chief Justice is preparing a response to the Congressman's request.

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