Trump Admin Proposes to Privatize Fannie and Freddie

22 Jun 2018


The Trump administration proposed on Thursday an end to the conservatorship of Fannie Mae and Freddie Mac, which would move the government-sponsored enterprises (GSE) into the private sector.

The changes aim to “ensure more transparency and accountability to taxpayers, and to minimize the risk of taxpayer-funded bailouts, while maintaining responsible and sustainable support for homeowners.”

This would be a good thing.


Wells Fargo Fined $1.2 Billion For Mortgage Insurance Fraud

3 Feb 2016

Wells Fargo to pay $1.2bn over mortgage insurance scam

The US bank was accused of improperly certifying government-backed home mortgage loans between 2001-2010.

The Justice Department argued Wells Fargo should not have certified the loans as eligible for the federal insurance scheme because it knew they did not meet the required standards for certification.

Taxpayers Insure $1.7 Billion in Losses from Reverse Mortgages

27 Sep 2013

FHA to draw $1.7b from Treasury to cover losses –

A federal housing agency said Friday it needs a $1.7 billion bailout from the Treasury to cover projected losses in a mortgage programs for seniors.

At issue are reverse mortgage programs, which allow seniors to borrow against their homes for everyday living expenses.

Reverse mortgage borrowers, who must be 62 or older, can take lump-sum or monthly payments. They still must pay property taxes and insurance. Sale proceeds from a home go to the lender when the borrower dies or moves out.

The FHA suffered big losses when many borrowers took large payments up-front and later ran into financial problems, often due to falling home values during the financial crisis.

The agency has sufficient cash to pay insurance claims against mortgage defaults, Galante said, citing more than $30 billion in cash and investments on hand, Galante said.

The cash infusion from the Treasury is about twice as much as the Obama administration projected would be needed in April. Obama’s fiscal 2014 budget request said the FHA would probably need $942 million.

There’s much to be taken from this account.

The reverse mortgage industry is one where the people living in the home have nothing to lose. The banks have nothing to lose. The taxpayers are on the hook for the loses that are incurred.

The Obama Administration planned for the program to lose money. They were off – needing twice as much to cover their losses.

Interesting that with almost $17 trillion in debt, the FHA has $30 billion in cash and investments on hand. What other agencies has cash on hand?

So much of this is questionable at best.

Foreclosure Crisis: Banks Fake Foreclosure Paperwork

14 Apr 2011

It is amazing that this type of behavior is allowed to exist – and is being covered up. This is the type of reckless behavior that has got us into financial trouble in this country. What’s really unbelievable is the government’s reaction to all of this.

The Next Housing Shock – 60 Minutes CBS (14 minutes)

A breakdown of the 60 Minutes Segment with an excellent explanation (if you are not familiar) can be heard here.
Street Talk Live – 4/6 Hour 1 (skip 20 minutes ahead)
Street Talk Live – 4/6 Hour 2 (skip 6 minutes ahead)

Under piles of paperwork, a foreclosure system in chaos

The nation’s overburdened foreclosure system is riddled with faked documents, forged signatures and lenders who take shortcuts reviewing borrower’s files, according to court documents and interviews with attorneys, housing advocates and company officials.

Here’s the cliff notes. Normally when transferring real property titles, there needs to be an actual pen & paper physical transfer. However, with the bundling of mortgage backed securities, and the amount of money to be made, banks shortcut the process and did not do paper transfers because it took to long.

So now banks have all of these foreclosures, and they are going to the homeowners about the foreclosures – but they can not prove they have the right to foreclose the property, because they have no paper.

So they got signature sweat shops to sign thousands of newly created fake documents – but it isn’t working.

In Georgia, an employee of a document processing company, Linda Green, for years claimed to be executives of Bank of America, Wells Fargo, U.S. Bank and dozens of other lenders while signing off on tens of thousands of foreclosure affidavits. In many cases, her signature appeared to be forged by different employees.

Green worked for a foreclosure document company owned by Lender Processing Services. The company is being investigated by a U.S. attorney in Florida for allegedly using improper documentation to speed foreclosures.

Lenders have already started to withdraw foreclosures that had Green’s name on them.

The government regulators didn’t say anything while the fraud was taking place. They did speak up when the people sued the banks – and they are suggesting a bailout. Incredible.

So we got the government and the Community Reinvestment Act forcing banks to make loans to people who can afford the loans in 1997.

We have citizens who misrepresent have much they make on their mortgage paperwork.

We have financial institutions bundling and selling these bad mortgages off for profit – and in their haste to make money, short cutting the process for transferring titles – and now they are busted – and they are trying to scam their way out of this with help from the government who started this mess.

How do we get out of this mess? No more bailouts – that’s for sure.