Mortgage Tornado Warning, Unheeded
http://www.cnbc.com/id/46270662
Years before the housing bust before all those home loans turned sour and millions of Americans faced foreclosure a wealthy businessman in Florida set out to blow the whistle on the mortgage game.
His name is Nye Lavalle, and he first came to attention not in finance but in sports and advertising. He turned heads in marketing circles by correctly predicting that Nascar and figure skating would draw huge followings in the 1990s.
But after losing a family home to foreclosure, under what he thought were fishy circumstances, Mr. Lavalle, founder of a consulting firm called the Sports Marketing Group, began a new life as a mortgage sleuth. In 2003, when home prices were flying high, he compiled a dossier of improprieties on one of the giants of the business, Fannie Mae.
In hindsight, what he found looks like a blueprint of todays foreclosure crisis. Even then, Mr. Lavalle discovered, some loan-servicing companies that worked for Fannie Mae routinely filed false foreclosure documents, not unlike the fraudulent paperwork that has since made robo-signing a household term. Even then, he found, the nations electronic mortgage registry was playing fast and loose with the law something that courts have belatedly recognized, too.
more at link...