The Conservative Cave
Current Events => The DUmpster => Topic started by: SSG Snuggle Bunny on October 04, 2011, 01:02:33 PM
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xchrom, to the unfamiliar, cheers every leftist idea and meme to dribble down Castro's beard.
xchrom (1000+ posts) Tue Oct-04-11 04:50 PM
Original message
House of Cronies: Is Freddie Mac Incompetent or Corrupt?
http://www.theatlantic.com/business/archive/2011/10/hou... /
Three years since the collapse of Lehman Brothers, we're not any closer to purging the rot at the heart of our financial-regulatory complex. Last December, Bank of America agreed to pay $1.35 billion to Freddie Mac for nearly 800,000 faulty mortgage loans that Freddie had bought from Countrywide, which has since been acquired by BofA. The full story, as told by the inspector general of the Federal Housing Finance Agency (i.e.: FHFA, Freddie's regulator), is a classic tale of institutional corruption.
The background is that Countrywide, then the country's largest originator of exotic mortgages, sold 787,000 loans to Freddie Mac. Under the terms of the sale, if it later turned out that some of those loans were defective, Freddie could sell them back to Countrywide for their full face value. Many of those loans were indeed defective due to inflated appraisals, fictional stated incomes, or other reasons.
By 2010, many of these mortgages had gone into foreclosure. This gave Freddie the option to sell the defective loans back to Bank of America, which then owned Countrywide. But proving that hundreds of thousands of loans were defective was a lot of work. Freddie only reviewed some of them, relying on a poor methodology that dramatically underestimated the number of defective mortgages. This increased losses to Freddie Mac -- losses that will eventually fall to Treasury and taxpayers.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2053666
It would be humorous if not so absurd.
BoA acquired Countrywide after Obama's cronies demanded it as part of the bailout. BoA didn't want CW because CW sucks ass. But they were ordered to do so: http://www.chron.com/business/article/Bank-of-America-deal-to-buy-Countrywide-is-a-1992707.php
The hand forcing the move was TurboTax Timmy Geitner: http://www.huffingtonpost.com/jane-hamsher/why-does-timothy-geithner_b_178034.html
Of course the reason CW went tits-up was because they were cronies of the dems, specifically Friend-of-Angelo, Chris Dodd: http://www.huffingtonpost.com/2008/06/13/chris-dodd-kent-conrad-ti_n_106925.html
Yes, that Chris Dodd of the Frank-Dodd Act.
The same Act that carries the Durbin Amendment forcing BoA to jack debit card fees.
But Freddie Mac is a gov't backed program.
It also follows government mandated lending practices that are more interested in "fairness" than in such trival details as solvency.
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They really have no idea what the background on this is at all.
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They really have no idea what the background on this is at all.
Of course they know, it's all Bush's fault!!!!1111111 eleventy one
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xchrom, to the unfamiliar, cheers every leftist idea and meme to dribble down Castro's beard.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2053666
It would be humorous if not so absurd.
BoA acquired Countrywide after Obama's cronies demanded it as part of the bailout. BoA didn't want CW because CW sucks ass. But they were ordered to do so: http://www.chron.com/business/article/Bank-of-America-deal-to-buy-Countrywide-is-a-1992707.php
The hand forcing the move was TurboTax Timmy Geitner: http://www.huffingtonpost.com/jane-hamsher/why-does-timothy-geithner_b_178034.html
Of course the reason CW went tits-up was because they were cronies of the dems, specifically Friend-of-Angelo, Chris Dodd: http://www.huffingtonpost.com/2008/06/13/chris-dodd-kent-conrad-ti_n_106925.html
Yes, that Chris Dodd of the Frank-Dodd Act.
The same Act that carries the Durbin Amendment forcing BoA to jack debit card fees.
But Freddie Mac is a gov't backed program.
It also follows government mandated lending practices that are more interested in "fairness" than in such trival details as solvency.
This goes back to the clinton admin. They had a mandate to get the unqualified into homes they couldn't afford. It was only a matter of time before the wheels came off.
If the democrat party didn't pander to the poor, they wouldn't have a plank to stand on.
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They really have no idea what the background on this is at all.
So young. So naive.
They know exactly what the background is; they're just lying and rewriting to protect their agenda.