The Security and Exchange Commission believes the executives who headed Fannie Mae and Freddie Mac for violations which caused the housing crash. Four top level executives are in the line of fire. The SEC maintains that the Fannie and Freddie did not give sufficient information to major mortgage lenders. Each division is accused of different violations.
According to the Washington Post, Fannie is alleged to misinform banks on the quality of loans citing that the mortgage loan were high-quality when the loans were high risk. The SEC feels that Freddie failed to warn investors of the risk associated with subprime loans. The Federal Housing Finance Association disagrees with the charges. Thus far official charges haven’t been filed but could be in the future.
The housing crash has been attributed to the low-quality loans given by the housing finance giants, Fannie and Freddie. Multitudes of homeowners are now facing foreclosure proceedings that require foreclosure attorneys to give them necessary assistance. The real estate crash has devastated many homeowners and the value of homes has declined causing many to owe more than their homes are worth.
The unemployment rates have also sent many homes into foreclosure that require foreclosure lawyers to guide them through the troubling process. In many real estate markets homeowners who can no longer afford their mortgage payments can’t even sell their homes because of the decreased value and employ foreclosure attorneys to relieve their growing debt.
