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Thread: Meet the new Fannie/Freddie; same as the old Fannie/Freddie

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    thruthefence's Avatar
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    Default Meet the new Fannie/Freddie; same as the old Fannie/Freddie

    From NPR this AM.

    Freddie Mac Betting Against Struggling Homeowners : NPR

    Billions bet in the derivative "market" AGAINST the likelihood of homeowner bailouts.

    Give you upside down mortgage holders a warm fuzzy?

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    bastards and A holes the whole lot of them, I listened to the whole thing on national peoples radio, just about blew a gasket.

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    morsetaper2 is online now Titanium
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    That's quite a conundrum.

    Freddie Mac is trying to stay afloat by.... holding homeownwers who are struggling to make their payments, but yet are still current and paid up, into UN-neccesarily high interest mortgages. When they could refinance into lower interest mortgages.

    I can't think of a better reason to get the govt out of the banking & mortgage business than this. Lemme guess... some executive at Freddie Mac is more concerned w/ his bonus than the problem the organization is supposed to serve.

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    ions82 is offline Stainless
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    I tried to refinance recently. I've had a mortgage for nearly eight years. Never missed a payment. Of course, no one is interested in helping me refinance.

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    Quote Originally Posted by thruthefence View Post
    Billions bet in the derivative "market" AGAINST the likelihood of homeowner bailouts.
    Despicable, yes! But as the article points out, this is what all of Wall Street was doing up to 2008: selling bundles of fraudulently rated sub-prime mortgages, and then taking out credit default swaps betting against them.

    "The financial crisis in 2008 was made worse when Wall Street traders made bets against their customers and the American public. Now, some see similar behavior, only this time by traders at a government-owned company who are using leverage, which increases the potential profits but also the risk of big losses, and other Wall Street stratagems. “More than three years into the government takeover, we have Freddie Mac pursuing highly levered, complicated transactions seemingly with the purpose of trading against homeowners,” says Mayer. “These are the kinds of things that got us into trouble in the first place.”


    4 years later and Credit Default Swaps are still legal, and Glass-Steagal still hasn't been reinstated.
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    thruthefence's Avatar
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    I wonder what Fannie/Freddie will do when Obama unveils his "October Surprise"?

    By that I mean a grand bailout of all underwater mortgages!

    Of course, that will never happen, but it won't be formally written off until after the election.

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    Had the same problem, just wanted a quick refinance to get a better interest rate, would've dropped almost 2 pts. Went through all the trouble and in the end and 1 month later I was told I did not qualify
    Keep in mind, this was the same mortgage company I already have and I would have been making the payments to the same company
    Dave

    Quote Originally Posted by ions82 View Post
    I tried to refinance recently. I've had a mortgage for nearly eight years. Never missed a payment. Of course, no one is interested in helping me refinance.

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    SteveM is offline Titanium
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    I'd want to say I can't believe this, but I can.

    They said that the investment operations are walled off, but come on!

    This would be like the investment manager for the Yankees buying stock in the Red Socks. Sure, it's legal and it may be walled off, but it's pretty obviously not right.

    Steve

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    thruthefence's Avatar
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    A better analogy might be BETTING on the Redsox.
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    Douglas Martins is offline Aluminum
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    Quote Originally Posted by morsetaper2 View Post
    Lemme guess... some executive at Freddie Mac is more concerned w/ his bonus than the problem the organization is supposed to serve.

    The head of Fannie is worried about where he will be dining with his lover Barney, chairman of the House of Representatives' Financial Services Committee......
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    swall is offline Aluminum
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    For you guys that tried to re-finance and got turned down, try another bank. My long time bank turned my re-fi down due to the house appraisal dropping and there not being enough equity to refinance the whole thing. I offered to put up more equity; they were agreeable, but then they sat on the app for 6 more weeks before they turned me down. The second institution gave me the re-fi with me putting in a little more equity and the process only took about 3 weeks. During the time the first bank horsed me around, the interest rate dropped another .75%. So, give it another shot.

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    Dont put all your faith in NPR they are slighted left no matter what they are paid to tell you. IF its true then I guess it must be legal and its been done before. We all do the same with insurance...betting that youll get sick and the company betting you wont meanwhile your paying to bet against yourself.

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    jdj
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    Quote Originally Posted by IAMATT View Post
    Dont put all your faith in NPR they are slighted left no matter what they are paid to tell you.

    Strange thing is, they are getting LESS "Left" as time goes on. They haven't even mentioned a couple of stories that they should have brought up and NEVER shut up about!

    Jeff

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    Matt,

    Just for the hell of it, insurance that big a deal. I pay for Life, hope to never need it. I pay for Health, hope I never need it. I pay for Auto, and I needed it 4 times in the last year, my own, when a deer hit ME, ran into the side of the car. Backed into in a parking lot, and 2 week later driven into the other side.

    All repairs paid for by the Insurers, that means you probably threw in a fraction of a cent. 4th was when an axle broke, and the tow truck fucked the front end of my Audi all to hell. 1800 damage trying to load it to haul, via AAA. My own Insurer paid for that. That's about 3 years of my premium.

    All in all, I am relatively happy that I HAVE insurance, and Medical in particular. I don't USE it, but I am happy to have it as a Benefit from my UNION Retirement.

    swall,

    I don't know why a bank that has you in a 5% mortgage would try too hard to get you into a 3.5% mortgage. Hey, they are going to make less money off you. Another bank will make 3.5% they were not, and they have money and no place to put it.

    Schneider, this applies to you, too. Go to another bank. My kids did that a year or so ago. Had to change Banks.

    I know nothing about all that shit, never had a mortgage. Built my house out of my own pocket. I'd probably shoot myself if I had a thou a month to come up with, or be tossed on the street. How you people can DO this, buy houses you cannot afford, and still be able to sleep, I'll never know.

    George

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    thruthefence's Avatar
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    I have to agree with Jeff on this NPR move away from the Left; but then look at the light that has been shown on the extreme leftards, and the resignations of them.

    Nina Totenberg (referring to Jesse Helms) said, "I think he ought to be worried about the about what's going on in the good Lord's mind, because if there's retributive justice, he'll get AIDS from a transfusion or one of his grandchildren will get it."

    Old news, but she should have resigned/been fired. Like Juan Williams, instead she was given a raise.

    The Hypocrisy of this was the beginning of the turn.

    then this:

    NPR Exec Fired In Video Sting | HonestReporting

    They are moving towards the center for self preservation.

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