first_img 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 Fraudcenter_img 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. last_img read more

first_imgIt’s become an all too familiar story. The USC women’s soccer team watches its opponents celebrate a thrilling victory, while  it is left completely shocked.All too often, there has only been silence on the Trojan sideline after the final whistle. And the Women of Troy’s (3-7-0) loss to Washington State (7-3-1) was no exception.Early surge · Junior forward Samantha Johnson (right) scored on a header 14 seconds into the Women of Troy’s Pac-12 opener against Washington State. It would prove to be their lone goal of Sunday’s contest. – Jaideep Chadha | Daily TrojanWith the score knotted at one in the 86th minute, Wazzou forward Brandi Vega singlehandedly dribbled through three Trojan defenders and took off down the right sideline.Matching her run unmarked down the middle was midfielder Jocelyn Jeffers. Vega centered it on a platter, and Jeffers slotted it past a helpless sophomore Shelby Church in goal.“It sums up everything we’ve been through this season,” USC coach Ali Khosroshahin said. “We lose focus in the most crucial moments in front of the goal. We lose our discipline.”That loss of discipline was the culmination of a Cougar onslaught over the previous 25 minutes.Washington State forced three corner kicks in quick succession and recorded 11 of its 18 shots in the second half.“I don’t even know what to say,” senior defender Claire Schloemer said. “It’s a heartbreaker. It brings back Texas.”Schloemer referenced the Women of Troy’s last game at McAlister Field two weeks ago, when they blew a 1-0 lead in the 80th minute before going on to lose in overtime.This time looked like it might be different. Off the opening kick, sophomore midfielder Haley Boysen broke free down the left sideline before launching a centered pass to senior forward Samantha Johnson, streaking down the center of the field. Johnson headed the ball right over the keeper’s shoulder for her first goal of the season.Fourteen seconds in the Trojans had the lead.The rest of the first half was mostly Women of Troy-dominated as well.Senior midfielder Carly Butcher had a pair of blistering shots from long range, including one that hit the crossbar and went straight down.The USC sideline screamed that the ball crossed the goal line and went in, but the referee just shook his head.“I thought for the first 60 minutes we were the better team,” Khosroshahin said. “And then about the 65th minute they stepped up and we shrank.”A more apt time, in the 67th minute, the Women of Troy suffered the same type of defensive breakdown that has plagued them all season.After the Women of Troy conceded a free kick deep in their own half, Cougar defender Rachael Doyle ended up with the ball to the left of the USC goal.She headed the ball back into the box, and it slithered all the way through the mass of Women of Troy defenders, Cougar attackers, and Church and found its way into the side netting to tie the game at one.“Just a lack of attention to detail,” Schloemer said. “[The scorer] didn’t even attack the ball. It just hit off her head and went in.”It’s starting to become desperation time for the Women of Troy, as they are in danger of suffering their first losing season since 1992.Now at the halfway mark, the Women of Troy have yet to win at home, and face the daunting task of the Pac-12 ahead.The Women of Troy will get another chance to right the ship next weekend when they host the Oregon schools at McAlister Field.last_img read more