Scandal at Fannie Mae: The Investigation Continues

In recent weeks, Fannie Mae executive James Tiegen was fired while the company is currently under investigation for soliciting illegal payments from real estate brokers. Tiegen, who headed the Irvine office of Fannie Mae, was reportedly laid off due to “performance issues”, but his involvement in the investigation is still unknown.

investigation

As mentioned in the article “Did Your Pocket get Picket by a Fannie Mae Employee” posted earlier this month on RE-Insider, the instigation began only a couple months ago, when former Fannie Mae foreclosure specialist Armando Granillo was arrested in L.A. for enticing an illegal kickback from an Arizona real estate broker. In exchange for a foreclosure listing, Granillo expected to receive a kickback of $11,200, a practice that is highly illegal. Granillo is due to face trial this August.

Surprisingly, this type of occurrence is more common than some would believe. During the federal sting operation, Granillo was recorded on a wiretapped phone call telling the Arizona broker that kickbacks from brokers are “a natural part of business” at Fannie Mae.

This coincides with what another disgruntled former employee of Fannie Mae has to say. Cecilia Carter, a former foreclosure specialist in Irvine, was fired in 2011 when she tried to expose the corruption going on at Fannie Mae. Carter reported that she had personally informed Tiegen of the kickbacks that many of the Fannie Mae employees had been receiving since 2009, and even identified Granillo as a participant in 2011.

Unfortunately the truth may be hard to uncover, or at least difficult to distinguish from falsity, which is why the U.S. attorney in L.A. has continued the investigation. According to Carter, many of the reports which have been passed on to congress have been altered by Fannie Mae officials.

Whether or not Tiegen was involved with these kickbacks is still unknown, but more information on this Fannie Mae scandal will surely arise as the federal investigation continues in upcoming weeks. Read the full story here:

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