Home > 2011 > Mortgages > Ohio AG Leads Class-Action Lawsuit Against Fannie Mae

Ohio AG Leads Class-Action Lawsuit Against Fannie Mae

Advertiser Disclosure Comments 3 Comments

MikeDeWine_OhioAGOhio Attorney General Mike DeWine said in Congress last week that the mortgage giant Fannie Mae is wasting millions of dollars of taxpayer money on an excessive legal defense for its former leaders.

“Simply put, Fannie Mae and its former executives have been using American taxpayer dollars to pay their highly compensated cadre of lawyers to over-lawyer their indefensible actions,” DeWine said in testimony before the Oversight and Investigations Subcommittee of the House Financial Services Committee. “It is wrong, it is unconscionable and I urge the committee and Congress to bring it to an end.”

[Consumer resource: How to Correct an Error on a Credit Report]

DeWine is the lead lawyer representing 29 million investors in a class-action lawsuit against Fannie Mae, three former executives and the companies accounting firm, KMPG. The suit accuses the defendants of consumer fraud. It’s been winding through the courts for six years – so long that DeWine is actually the third attorney general from Ohio to play the role as lead litigant.

In his testimony, DeWine described recent trial conferences in which 35 to 40 lawyers and paralegals representing Fannie Mae crammed into the judge’s chambers to discuss the case. The plaintiffs brought three.

Taxpayers foot the bill for both sides. The plaintiff’s lawyers are with DeWine’s office. Fannie Mae’s army of lawyers is paid by the federal government, which took ownership of the company in 2008. They have charged at least $132 million in legal fees since the case began.

“Fannie Mae and the executives whom it is indemnifying are using taxpayer resources to lawyer this case to death and delaying justice for those whom they defrauded in the first place more than six years ago, while simultaneously swindling every American taxpayer,” DeWine said.

[Featured products: Monitor your credit reports and scores]

Image courtesy www.ohioattorneygeneral.gov

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • the gerald

    dewine has complained and whined everywhere about the lawering, but i have yet to see a summary of the case. i think it is just the dewine running for public office case.

  • http://outlookexpressorzoomtownemail George Mc Gonigle

    I lost 25 thousand dollars. How do I sign on as a party to the class action suit by the Ohio A.G.?

  • Juanita B. Thomas

    I too lost considerable funds buying and investing in a former Fannie Mae home. It was over appraised by some $10k by the mortgage lender on behalf of the seller and mortgage lender broker(an additional $4k-$1700 to broker and closing costs for seller entered on my side of contract). The lender recently had class action filed against them which we all know most of which went to the attorneys. It”s amazing how this lender posts the escrow sheet to fudge funds and extract frunds without justification, alleging all the time, it is a way to correct the payments. What are they doing that needs all that correction? that’s another question that remains unanswered.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.