The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Former Fannie Mae CEO Claims SEC Failed to Prove Accusations of Subprime Lending Fraud Sign up for DS News Daily Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 23, 2015 1,063 Views Tagged with: Fannie Mae SEC Subprime Lending Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Former Fannie Mae CEO Claims SEC Failed to Prove Accusations of Subprime Lending Fraud Fannie Mae SEC Subprime Lending 2015-03-23 Brian Honea About Author: Brian Honea in Daily Dose, Featured, Government, News Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Former Fannie Mae CEO Daniel Mudd told a judge that he did not believe the U.S. Securities and Exchange Commission (SEC) had proven its claims that the government-sponsored enterprise was guilty of fraud in regards to its subprime mortgage portfolio in the run-up to the financial crisis, according to media reports.Mudd, the CEO of Fannie Mae during the years leading up to the housing crash (2005 to 2008), and former Fannie Mae executives Enrico Dallavecchia (chief risk officer) and Thomas A. Lund (EVP), requested that Judge Paul Crotty in the U.S. District Court of the Southern District of New York grant them summary judgment on the grounds that the SEC had not shown evidence that the GSE misled or made false statements to investors about its subprime portfolio.The SEC sued the Fannie Mae executives in December 2011, claiming that they attempted to shield from investors the amount of subprime and high risk mortgage loans held by the Agency by omitting two types of loans known as Expanded Approval and MyCommunityLoans from financial statements.”Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, Director of the SEC’s Enforcement Division, at the time the lawsuit was filed. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk on the company’s books. All individuals, regardless of their rank or position, will be held accountable for perpetuating half-truths or misrepresentations about matters materially important to the interest of our country’s investors.”The executives responded by saying that Expanded Approval and MyCommunityLoans, which were intended for borrowers with weaker credit, were excluded from the financial statements because they did not qualify as subprime loans under Fannie Mae’s own qualification guidelines, according to reports. The defendants contend that investors had access to the Fannie Mae guidelines that define a subprime loan, and that a reasonable investor could have used that information to make informed judgments as to the Agency’s involvement in subprime loans or any other type of mortgage loan.According to reports, the SEC’s complaint alleged that a Fannie Mae 2007 public filing said that the extent of Agency’s involvement in single-family subprime mortgage loans amounted to $4.8 billion; however, the Agency held more than $57 billion worth of Expanded Approval and MyCommunityMortgage loans. In February 2008, which was seven months before Fannie Mae and Freddie Mac were taken into conservatorship by the Federal Housing Finance Agnecy, Fannie Mae reportedly had $90 billion worth of loans on the books but claimed only a small percentage of that was subprime loans. Crotty rejected a motion by the defendants in 2012 to have the SEC lawsuit dismissed; at that time, the judge called it “misleading” to not count Expanded Approval and MyCommunityMortgage Loans as subprime loans. Demand Propels Home Prices Upward 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: DS News Webcast: Tuesday 3/24/2015 Next: Schneiderman & Sherman Adds Three New Attorneys and Foreclosure Manager Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.
An incredulous Bob Arum labeled Andres Gutierrez a “disgrace” after the fighter was pulled out of his WBC super featherweight world title eliminator against Oscar Valdez for weighing in a stunning 11 pounds over the limit.Valdez’s debut at 130 pounds will now come against late replacement Adam Lopez, who was previously scheduled to appear on the undercard. Veteran promoter Arum told FightHype.com: “I’ve seen a guy two or three pounds overweight, that’s still unprofessional. To come in 11 pounds overweight is a f—ing disgrace. We’re throwing him out of the hotel.”Join DAZN to watch Ruiz vs. Joshua 2 and 100-plus fight nights a yearAsked if there was any chance of Valdez still facing Gutierrez, Arum added: “I am not allowing, and neither would the commission allow, a fight to go ahead at 130 when a guy comes in 11 pounds over that. You’re not allowed. There’s rules.”Gutierrez was duly suspended by the WBC, which lamented his “embarrassing and extraordinary action” in a statement. WBC president Mauricio Sulaiman said: “What just happened in Las Vegas is of extreme concern. Gutierrez is officially suspended by the WBC and we will initiate a thorough investigation of the facts.”Before Lopez’s promotion to the main event was confirmed, a dejected Valdez made it clear he was still willing to face Gutierrez.”My immediate reaction was ‘I’ll still fight him,’ because now there’s even more anger. Now I really want to get in there and really kick your ass.” @CrystinaPoncher with @oscarvaldez56 , who has even more motivation now against a new opponent. #ValdezLopez | TOMORROW | ESPN+ pic.twitter.com/L4ZWhOv7Eo— Top Rank Boxing (@trboxing) November 30, 2019″It’s unbelievable. I had to hear it [Gutierrez’s weight] twice because I wasn’t sure if it was 131 or 141. When I saw it was 141, I couldn’t believe that,” Valdez, the former WBO featherweight champion, said. “It’s very unprofessional. I’m very upset. I’m just very disappointed in him.”