Feds crack down on all the mortgage scammers but one

By Michelle Malkin  •  April 6, 2009 03:50 PM

There was a big dog-and-pony show earlier today led by Tiny Tim Geithner, who announced bold new initiatives to crack down on mortgage scammers and shut down irresponsible lenders cooking the books.

Speaking of mortgage scammers who cooked the books, when will they shut down Fannie and Freddie and go after their enablers in Congress?

Oh, never mind.

Judicial Watch has a new trove of FOIA records on congressional complicity in the Fannie/Freddie racket:

Judicial Watch obtained the documents from the Federal Housing Finance Agency (FHFA) in response to a Freedom of Information Act (FOIA) request dated December 4, 2008. Judicial Watch requested records related to members of Congress activity regarding the policy of Fannie Mae and Freddie Mac to increase lending to individuals with poor credit risk, as well as correspondence and records about contacts between FHFA and Fannie and Freddie. Among the important documents:

*FHFA letter, dated March 26, 2007, from the director of the Office of Housing Enterprise Oversight (OHFEO), James B. Lockhart, to U.S. Senators Elizabeth Dole, Chuck Hagel, Mel Martinez and John Sununu: “This is a very serious issue. Freddie Mac’s inadequate systems and controls make it a significant supervisory concern. Furthermore, its lack of timely public disclosures deny market participants the essential financial information made available by all other publicly traded companies so that investors may make informed judgments.” The letter also mentions, “…Fannie Mae still has not filed financial statements for 2005 and 2006 and thus, they are not timely filers either.”

*FHFA letter, dated December 3, 2004, to Congressman Barney Frank: “On November 15, 2004 Fannie Mae filed a Form 12b-25 with the Securities and Exchange Commission (SEC). Fannie Mae indicated that its external auditors could not complete their reviews of its financial statements and noted the possibility of up to a $9 billion loss dating back to 2001. As a result, OHFEO has determined it will not provide a monthly capital classification at this time.”

*Letter dated June 16, 2006, from OHFEO Director Lockhart to Senator Chuck Hagel: “…In January 1999, Chairman and CEO Franklin Raines approved a recommendation made by the Chief Financial Officer (CFO) (Tom Howard) and the Controller (Leanne Spencer) to defer recognition of $200 million in amortization expense. This deferral, along with other accounting decisions made at that time relating to provisions for loan losses and the recognition of low-income housing tax credits, allowed management to meet the EPS threshold for maximum bonuses.”

Overall, these documents show that Congress was made aware of the massive problems at Fannie Mae and Freddie Mac over the last six years. Yet liberals, led by Congressman Barney Frank, repeatedly blocked attempts to rein in Fannie Mae and Freddie Mac.

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  1. Fannie Mae and Freddy Mac to escape mortgage scammers crack down | Fire Andrea Mitchell!
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  6. Watch Barney Frank bully a college student and lie through his teeth about his role in the mortgage crisis. « The IUSB Vision Weblog
  7. Barney Frank–Hang Him High–Just Kidding–Put Barney Frank In Jail for 30 Years For Malfeasance–Fair Enough! « Pronk Palisades

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Comments


  1. #670120
    On April 6th, 2009 at 3:55 pm, spaceycakes said:

    You know, some days I think you, Michelle, and therefore the posters here, are the only ones that notice anymore. Or care.

    It all makes me so very sad.

  2. #670128
    On April 6th, 2009 at 4:01 pm, d1carter said:

    Let’s organize a bus tour of Chris Dodd and Barney Frank’s house…

  3. #670129
    On April 6th, 2009 at 4:01 pm, Rogue Cheddar said:

    My wife is always telling me to get into politics because I care so much. I tell her I can’t because my diplomacy skills would result in my immediate incarceration.

  4. #670135
    On April 6th, 2009 at 4:07 pm, Dexter Alarius said:

    This deferral, along with other accounting decisions made at that time relating to provisions for loan losses and the recognition of low-income housing tax credits, allowed management to meet the EPS threshold for maximum bonuses.

    Defer massive losses to allow for maximum bonuses! What could be wrong with that?

    Um… wasn’t Barney Franks’ boyfriend at the time an executive at Fanny or Freddy? Just a coincidence, I’m sure.

  5. #670136
    On April 6th, 2009 at 4:09 pm, letget said:

    Rogue Cheddar,
    My hubby thinks he may go into politics, but like you, he is WAY too vocal to be elected in a sane world. He would not be a ‘player’. Too bad, we need more of ‘not the player’ mode.
    L

  6. #670139
    On April 6th, 2009 at 4:11 pm, NJ-Aviator said:

    This deferral, along with other accounting decisions made at that time relating to provisions for loan losses and the recognition of low-income housing tax credits, allowed management to meet the EPS threshold for maximum bonuses.

    Yes Dexter, I do believe Barney’s little honey-cake dude was among the higher-ups at one of those institutions.

    But the portion you quoted seems to me to be unadulterated fraud.

  7. #670142
    On April 6th, 2009 at 4:15 pm, iamsaved said:

    We need a divorce in this country. Received recently via email…

    DIVORCE AGREEMENT

    Dear American liberals, leftists, social progressives,
    socialists, Marxists and Obama supporters, et al:

    We have stuck together since the late 1950’s, but the whole of this latest election process has made me realize that I want a divorce. I know we tolerated each other for many years for the sake of future generations, but sadly, this relationship has run its course. Our two ideological sides of America cannot and will not ever agree on what is right so let’s just end it on friendly terms. We can smile and chalk it up to irreconcilable differences and go our own way.

    Here is a model separation agreement:

    Our two groups can equitably divide up the country by landmass each taking a portion. That will be the difficult part, but I am sure our two sides can come to a friendly agreement. After that, it should be relatively easy! Our respective representatives can effortlessly divide other assets since both sides have such distinct and disparate tastes.

    We don’t like redistributive taxes so you can keep them.
    You are welcome to the liberal judges and the ACLU. Since you hate guns and war, we’ll take our firearms, the cops, the NRA and the military. You can keep Oprah, Michael Moore and Rosie O’Donnell (You are, however, responsible for finding a bio-diesel vehicle big enough to move all three of them).

    We’ll keep the capitalism, greedy corporations, pharmaceutical companies, Wal-Mart and Wall Street. You can have your beloved homeless, homeboys, hippies and illegal aliens. We’ll keep the hot Alaskan hockey moms, greedy CEO’s and rednecks. We’ll keep the Bibles and give you NBC and Hollywood.

    You can make nice with Iran and Palestine and we’ll retain the right to invade and hammer places that threaten us. You can have the peaceniks and war protesters. When our allies or our way of life are under assault, we’ll help provide them security.

    We’ll keep our Judeo-Christian values.. You are welcome to Islam, Scientology, Humanism and Shirley McClain. You can also have the U.N.. but we will no longer be paying the bill.

    We’ll keep the SUVs, pickup trucks and oversized luxury cars. You can take every Subaru station wagon you can find.

    You can give everyone healthcare if you can find any practicing doctors. We’ll continue to believe healthcare is a luxury and not a right. We’ll keep The Battle Hymn of the Republic and the National Anthem.
    I’m sure you’ll be happy to substitute Imagine, I’d Like to Teach the World to Sing, Kum Ba Ya or We Are the World.

    We’ll practice trickle down economics and you can give trickle up poverty your best shot. Since it often so offends you, we’ll keep our history, our name and our flag.

    Would you agree to this? If so, please pass it along to other like minded liberal and conservative patriots and if you do not agree, just hit delete. In the spirit of friendly parting, I’ll bet you ANWAR which one of us will need whose help in 15 years.

    Sincerely,

    John J. Wall Law Student and an American

    P.S. Also, please take Barbara Streisand & Jane Fonda with you.

  8. #670146
    On April 6th, 2009 at 4:19 pm, Pasadena Phil said:

    The official government position on Fannie/Freddie is: “too big to fail”.

    Referencing Webster’s Collegiate Cynical Political Euphemism to English Dictionary, that translates to: “Leave our good ole boys alone!”.

  9. #670152
    On April 6th, 2009 at 4:23 pm, ackvil said:

    Iamsaved: that was just priceless!

  10. #670155
    On April 6th, 2009 at 4:25 pm, Rogue Cheddar said:

    On April 6th, 2009 at 4:09 pm, letget said:
    Rogue Cheddar,
    My hubby thinks he may go into politics, but like you, he is WAY too vocal to be elected in a sane world. He would not be a ‘player’. Too bad, we need more of ‘not the player’ mode.
    L

    I know what you mean, my BS meter pegs too easily. As it is where I work, they don’t call me to meetings unless they really have to, because they don’t like it when I tell them where the dog died.

  11. #670162
    On April 6th, 2009 at 4:31 pm, karnold said:

    @ iamsaved: LOVED it! It’s a popular meme whose time has come. Here’s a similar one – tell me what you think:

    http://stand.blogtownhall.com/2008/12/19/the_detroit_automaker_bailout_and_the_confederacy.thtml

  12. #670163
    On April 6th, 2009 at 4:31 pm, Mercy4Me said:

    I love the divorce idea

  13. #670165
    On April 6th, 2009 at 4:35 pm, tonyr951 said:

    *FHFA letter, dated December 3, 2004, to Congressman Barney Frank: “On November 15, 2004 Fannie Mae filed a Form 12b-25 with the Securities and Exchange Commission (SEC). Fannie Mae indicated that its external auditors could not complete their reviews of its financial statements and noted the possibility of up to a $9 billion loss dating back to 2001. As a result, OHFEO has determined it will not provide a monthly capital classification at this time.”

    Clearly written by someone who hates gays, minorities and poor people.

  14. #670172
    On April 6th, 2009 at 4:39 pm, Southpaw said:

    On April 6th, 2009 at 4:31 pm, Mercy4Me said:
    I love the divorce idea

    Me too. Wondering where I can download the divorce forms.

  15. #670174
    On April 6th, 2009 at 4:43 pm, graysonret said:

    My hubby thinks he may go into politics

    Don’t. Not unless you want to give up your morals and values. My Dad, once, had the opportunity to run and his decision, “no”, was because of his morals and values. Years ago, I didn’t understand that. Today, seeing how the government runs and knowing how the parties manipulate “newbies”, I can see why. Hang on to what you think is right, may find you an ignored “loner” in the mold, without re-election possibilities. You may have to sacrifice some of your values, just to get what you want looked at (as in bills). Unless it is city council, I wouldn’t consider it myself.

  16. #670175
    On April 6th, 2009 at 4:43 pm, RedDog said:

    The Democrats in Congress started this avalanche. Not only are they not being prosecuted along with their stupid and greedy Wall Street partners (of whom Geithner is one), but they are still working their magic in full view of the public. And no one in authority sounds an alarm. Their consciences are seared beyond repair. No wonder they have no concept of their own criminality.

    The world of right and wrong has been turned on its head.

  17. #670176
    On April 6th, 2009 at 4:44 pm, docflash said:

    Is there a bus we can throw these people under?What is the next step to get this out.I am afraid to contact my Senators or Congressman,they may be in on it too.

  18. #670178
    On April 6th, 2009 at 4:46 pm, Ragspierre said:

    Walter Williams…among a lot of others…has been suggesting that a “divorce” is where we are headed.

    I’ll let them take the East and West Coasts.

    Just give us the middle, and we’ll see how things look in a decade or two…

  19. #670209
    On April 6th, 2009 at 5:26 pm, ctmom said:

    Isn’t there some self respecting journalist out there that would love to make his/her name on a blockbuster story about FM/FM and Dodd and Frank?

  20. #670225
    On April 6th, 2009 at 5:52 pm, Ragspierre said:

    Isn’t there some self respecting journalist out there that would love to make his/her name on a blockbuster story about FM/FM and Dodd and Frank?

    Sadly, “self-respecting journalist” has to be seen through the reality of Bernard Goldburg’s A Slobbering Love Affair.

    They don’t see reality.

    They are not simply “self-respecting”…

    they are self-loving, group-think meisters.

  21. #670232
    On April 6th, 2009 at 6:09 pm, Flyoverman said:

    Well now…. what have we got here? Hmmmm?

  22. #670238
    On April 6th, 2009 at 6:22 pm, zorro said:

    On April 6th, 2009 at 3:55 pm, spaceycakes said:

    You know, some days I think you, Michelle, and therefore the posters here, are the only ones that notice anymore. Or care.

    It all makes me so very sad.

    Things do look bleak, but I am not sad, I’m fired up, ready to fight for Liberty. We are living history right now. We either roll over and become surfs or we rise up and fight. Our leaders, with clear voices like Michelle, are all about us here in this community. Take heart spacey, we will win this fight.

  23. #670240
    On April 6th, 2009 at 6:32 pm, Hannibal said:

    On April 6th, 2009 at 5:26 pm, ctmom said:

    Isn’t there some self respecting journalist out there that would love to make his/her name on a blockbuster story about FM/FM and Dodd and Frank?

    He is not self-respecting or a real journalist but David Gregory might do it. However, I think he and Herb Moses are co-writing a new book entitled How We got Fanny at Fannie Mae.

  24. #670248
    On April 6th, 2009 at 6:49 pm, Southpaw said:

    On April 6th, 2009 at 3:55 pm, spaceycakes said:
    You know, some days I think you, Michelle, and therefore the posters here, are the only ones that notice anymore. Or care.

    It all makes me so very sad.

    It’s all good. The liberals are just being given enough rope to… hang a noose on a doornob… and cry racism…..

    Nevermind.

  25. #670273
    On April 6th, 2009 at 7:27 pm, cheapseat said:

    i am saved, divorce decree, my sentiments exactly. just before the election i got into a big argument with my brother who is married to a kumbia lib, and she sent me an email saying we should split into red and blue countries. she said the blue would have all the business of new york, california, washington, boston and chicago, while the red would have nascar. i wrote back the red would have all the doctors because the blue would get all the lawyers due to tort reform. the high wage earners would all move to the red states to escape all the onerous taxes and regulations imposed to maintain the welfare state. the blue states would have the welfare and illegal immigrant population, because the red states wouldn’t pay people to be lazy brood sows. and last but not least, the red states would have the food production, because california would have to buy water from us, and oh yeah, we would have the military to protect our sovereignty. she didn’t think it was funny. neither did i.

  26. #670289
    On April 6th, 2009 at 8:05 pm, frontierguy said:

    she didn’t think it was funny. neither did i.

    I notice that too. Libs make comments like that and when people like us point out things, like you did, they get angry. People only ever get angry when they are told truth that they do not like. You ever notice the liberals who grace us with their wisdom never come into threads like this one, if they do, they never comment. Ignoring corruption and double standards do not make them go away. Obama and administration are proving themselves to be failures. The world loves them alright, because they know what suckers they are.

  27. #670323
    On April 6th, 2009 at 9:02 pm, Flyoverman said:

    The stench coming from this carcass grows day after day after day.

  28. #670352
    On April 6th, 2009 at 10:14 pm, Surveyor said:

    I’m with zorro.

    8)

  29. #670451
    On April 7th, 2009 at 6:39 am, almeehan said:

    There really does need to be a mass march on Barney & Chris’ houses with pitchforks and torches.

  30. #670469
    On April 7th, 2009 at 8:10 am, NJ-Aviator said:

    Good one I am saved. But don’t forget territory.

    They can have the northeast and the part of PA within 20 miles of the Delaware. Plus SF and LA. But we’ll take everything else. We need the space for rifle ranges, hunting and houses of worship.

  31. #670491
    On April 7th, 2009 at 9:20 am, cicerokid said:

    On April 6th, 2009 at 4:01 pm, d1carter said:
    “Let’s organize a bus tour of Chris Dodd and Barney Frank’s house…”

    Stay away from Frank’s basement!

  32. #670493
    On April 7th, 2009 at 9:26 am, Ragspierre said:

    Stay away from Frank’s basement!

    Was that there one of them “double in-tan-dres”

  33. #670520
    On April 7th, 2009 at 10:16 am, happyscrapper said:

    On April 6th, 2009 at 4:01 pm, d1carter said:
    Let’s organize a bus tour of Chris Dodd and Barney Frank’s house…

    Yeah, interesting about those bus tours. Obama’s thug squad is organized to threaten and intimidate the AIG employees who received contractually legal bonuses. Yet, the bonuses for Fannie Mae and Freddie Mac crooks are paid out and no one says “boo”. Congress stirs up public outrage over AIG, yet does a massive cover-up for thier “friends”. How much more of these cover-ups are we going to stand for as a country? How much more treason are we going to allow right under our noses? When are those pitchforks going to be aimed at congress? And by the way, when is our so-called “president” going to stop campaigning and start leading? Oh, never mind!

  34. #670530
    On April 7th, 2009 at 10:25 am, happyscrapper said:

    On April 6th, 2009 at 4:46 pm, Ragspierre said:
    Walter Williams…among a lot of others…has been suggesting that a “divorce” is where we are headed.

    I’ll let them take the East and West Coasts.

    Just give us the middle, and we’ll see how things look in a decade or two…

    Good plan. I am in flyover country and I know a few folks who could help, including a bunch on this blog! Those of you who live on the east or west coasts, you are more than welcome to join us in the middle!

  35. #670568
    On April 7th, 2009 at 11:06 am, rocketman said:

    ***
    I would like (the most ethical evah) Congress to get back the millions of dollars that JAMIE GORLICK has been given for her Justice Department and Freddie / Fannie work.
    ***
    I think she got a lot more than the businessmen did–and that she did a lot more damage to our country than the Wall Street types did.
    ***
    John Bibb
    ***

  36. #670661
    On April 7th, 2009 at 12:13 pm, pueblo1032 said:

    Many, many weeks back “THE BANKING QUEEN” . FRANK said we will go after the “PEOPLE” responsible for this MESS… OHHH, be still my heart, were they to start with BARNEY FRANK and CHRIS DODD. What, what, ohh, yes dear time to get up… HUN, you should have seen the WONDERFUL dream I was having…

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