WHY DID THE FEDERAL HOME MORTGAGE LOAN COMPANY BUY LOANS FROM BANKS

Among the most troubling findings in the Inspector General's report is the conclusion that FHFA and Fannie Mae continued to utilize the services of law firms they knew were engaging in abusive and illegal actions against homeowners," But Fannie Mae had continued to include the firm on its retained attorney list, while also continuing to use a Bethesda law firm that last year acknowledged filing foreclosure cases with false signatures, according to news reports. https://www.baltimoresun.com/business/real-estate/bs-bz-mortgage-giant-abuses-20111004-story,amp.html the Department of Justice has reached a $16.65 billion settlement with Bank of America Corporation – the largest civil settlement with a single entity in American history ­— to resolve federal and state claims against Bank of America and its former and current subsidiaries, including Countrywide Financial Corporation and Merrill Lynch. As part of this global resolution, the bank has agreed to pay a $5 billion penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever – and provide billions of dollars of relief to struggling homeowners, including funds that will help defray tax liability as a result of mortgage modification, forbearance or forgiveness. https://www.justice.gov/opa/pr/bank-america-pay-1665-billion-historic-justice-department-settlement-financial-fraud-leading