For Immediate Release

Organization Profile: 
Contact: 

Steve Carpinelli (202) 481-1225

Ginnie Mae's Troubling Endorsements

Little-known Federal Agency Backed Dozens of Lenders with Checkered Pasts

WASHINGTON - t
least 36 mortgage companies with histories of civil suits, reckless
lending, fines, or other sanctions from regulators have for years
received the blessing of Ginnie Mae, the government's huge mortgage
guarantor, according to a new collaborative investigation by the Center
for Public Integrity and The Washington Post. The story, "Ginnie Mae's Troubling Endorsements," features an interactive database of troubled mortgage firms that have been endorsed by Ginnie Mae.

Ginnie Mae authorizes
lenders to bundle mortgages into securities and sell them to investors
- backed by U.S. taxpayer funds. More than a dozen lenders with Ginnie
Mae's endorsement have made loans that are now delinquent at rates far
in excess of what regulators consider acceptable, according to the
investigation. Sixteen of the lenders have been cited by various
federal regulators for unsafe banking practices, insufficient capital,
or other violations.

SCROLL TO CONTINUE WITH CONTENT

Something is Happening. People are Drawing Lines.
And We’ve Got It Covered.

But we can't do it without you. Please support our Winter Campaign.



The Department of Housing
and Urban Development's inspector general says Ginnie Mae is too
accommodating of problem lenders and Ginnie Mae's outside auditor
recently reported a "significant deficiency" in the agency's internal
controls.

###

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do.



The Center for Public Integrity is a nonprofit organization dedicated to producing original, responsible investigative journalism on issues of public concern. The Center is non-partisan and non-advocacy. We are committed to transparent and comprehensive reporting both in the United States and around the world.

Share This Article

More in: