The top Republican on the House Financial Services Committee called on Friday for an investigation into charges that mortgage finance giant Fannie Mae pushed borrowers into a mortgage aid program so it could receive incentive payments from the U.S. government.
Spencer Bachus, the top Republican on the House Financial Services Committee, asked panel chairman Barney Frank to hold a hearing to investigate allegations made in a lawsuit filed in June by former Fannie Mae consultant Caroline Herron.
The Center for Public Integrity, a government watchdog group, disclosed the lawsuit on Friday. In it, Herron said she was fired in January after she raised questions about delays and missteps in President Barack Obama's $50 billion Home Affordable Modification Program (HAMP).
The HAMP program, which is administered by Fannie Mae, helps subsidize new terms for borrowers struggling to keep up with their mortgage payments.
Read on.
Center of Public Integrity has more:
Caroline Herron, a former Fannie vice president who returned to the mortgage giant in 2009 as a high-level consultant, claims that the homeowner-relief effort was marred by delays, missteps and executives preoccupied with their institution’s short-term financial interests.
“It appeared that Fannie Mae officers were focused on maximizing incentive payments available to Fannie Mae under various federal programs – even if this meant wasting taxpayer money and delaying the implementation of high-priority Treasury programs,” she claims in the lawsuit.
Herron alleges that Fannie Mae officials terminated her $200-an-hour consulting work in January because she raised questions about how it was administering the federal government’s push to help homeowners avoid foreclosure, known as the Home Affordable Modification Program, or HAMP
Here is the lawsuit. Click here.
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