WHAT: Mortgage giant Fannie Mae knew about allegations of foreclosure abuses by law firms since 2003. It hired a law firm to investigate in 2005. The firm reported in 2006 that foreclosure attorneys were “routinely filing false pleadings and affidavits.”
HOW: The housing meltdown overwhelmed the mortgage industry with foreclosures. Lenders were tempted to take illegal shortcuts and the average foreclosure processing time ballooned from 150 days to more than 400 days between 2007 and 2010.
WHY IT’S OUTRAGEOUS: Fannie Mae has continued to use mortgage law firms that were linked to “robosigning” and other widespread foreclosure violations by a federal inspector general’s investigation.