And we’re here to prey upon you…
[Freddie Mac’s] charter calls for the company to make home loans more accessible. Its chief executive, Charles Haldeman Jr., recently told Congress that his company is “helping financially strapped families reduce their mortgage costs through refinancing their mortgages.”
But the trades, uncovered for the first time in an investigation by ProPublica and NPR, give Freddie a powerful incentive to do the opposite, highlighting a conflict of interest at the heart of the company. In addition to being an instrument of government policy dedicated to making home loans more accessible, Freddie also has giant investment portfolios and could lose substantial amounts of money if too many borrowers refinance.
h/t Jason
They are GSE’s , the only money they lose , is from taxpayers and goes to the bloated salaries and bonuses of the cronies in charge at the present .
And watch out for the seller/broker of these so called refinance portfolios.
They will call you up,
or by mail offer you a 4 percent interest rate.
Get you to give them a $295-$495 dollar partial closing cost up front-
depending on how big a sucker they think you are.
Then you never get the refinanced loan,
and never get your $295-$495 closing cost back.
Seems bogus to me — the article makes leaps of logic all over the place and doesn’t provide evidence for most of its assertions. Freddie Mac bashing is easy sport these days. Why wouldn’t Freddie traders be allowed to buy securities across the spectrum or risk? It’s just typical stupid liberal logic. Plus, the sob story is just pathetic — of course you don’t make loans to people who just completed a short sale, why would you? The left is trying to run the economy off a cliff again by undermining underwriting standards. SDA readers should be wise to this.
Life imitates art. This is almost exactly the plot line from the new Showtime series “House of Lies” pilot episode.