In 2003 businessman identified foreclosure abuses

Nye Lavalle

Unlike the many whistle blowers who are ignored - especially those whose rhetoric seems overheated to those used to the way business is done - Nye Lavalle hit the nail on the head and got a response.  His charges of mortgage foreclosure fraud prompted Fannie Mae to undertake a rebuttal.  The FNMA commissioned an analysis and report by the D.C. law firm Baker & Hostetler, LLP.  The lawyers confirmed many of Lavalle's allegations, but Fannie Mae ignored their warnings, according to an account in today's Times by Gretchen Morgensen.  In 2006 Baker & Hostetler concluded:

“It is axiomatic that the practice of submitting false pleadings and affidavits is unlawful...With his complaint, Mr. Lavalle has identified an issue that Fannie Mae needs to address promptly.”

But FNMA did not promptly address the issue.  Of the seven deadly sins sloth and greed are most obviously implicated.