Feds Order Fannie to Forfeit $6.5 million in Gains

Fannie Mae, eager to unload a batch of fraudulent loans it bought from one of its authorized lenders, turned a blind eye as independent lender James McLean resold the bogus notes to Ginnie Mae in one of the nation’s largest mortgage schemes, according to the Justice Department and federal housing officials.

“Fannie should have been a better citizen in advising the respective regulatory agencies of the potential fraud that existed here,” said Kenneth Donohue, the top cop for the Department of Housing and Urban Development. “The coordination between these agencies is paramount to make sure these cases don’t happen or don’t get worse.”

Last month, a U.S. District Court in Charlotte, N.C., in a sealed ruling, ordered Fannie to forfeit $6.5 million in “criminally derived” gains received from McLean’s First Beneficial Mortgage Co.

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