... The Federal Housing Finance Agency Leads The Way on the Road to Recoupment.
The Federal Housing Finance Agency is investigating Trustees for pools of Mortgages and Servicers of the pooled Mortgages. The FHFA has subpoenaed unidentified records from 64 different entities. Subpoenas became necessary when polite requests were ignored.
"Among the bigger trustees in the business are Deutsche Bank and the Bank of New York, while loan servicers include Bank of America and many more. None of the banks would confirm if they had received subpoenas." Gretchen Morgenson, "Fair Game/Holding Bankers' Feet to the Fire" p. 1, col. 1 (New York Times, "SundayBusiness" Section, Sunday, July 18, 2010).
The FHFA is the Conservator of Fannie Mae and Freddie Mac. It is charged with recouping the Federal Taxpayers' payments and losses on failed Mortgages where the circumstances warrant recoupment. That clearly seems to be the focus of the FHFA investigation: "Once that question has been answered, Fannie and Freddie can force the institutions that sold the securities to repurchase the improper loans, allowing taxpayers to recover some of the losses they've swallowed on Fannie's and Freddie's federal bailout." Id.
Reports of the demise of recoupment and restitution following the Great Collapse are premature.
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