Tuesday, January 31, 2012

Giant Gov't Mortgage Entity Freddie Mac "Bets" Against Homeowers

Disturbing details in long ProPublica article here. 
Podcast here
Outraged congressman calls for end to the shenanigans.
Since 2008 Freddie Mac and sister Fannie Mae have come to own or back a huge number of American mortgages.  Their mandate: to help make US housing more affordable.  Freddie Mac, along with Fannie Mae, was placed in government conservatorship in 2008 after losing billions of dollars in the housing bust.  Now, NPR and ProPublica discover it has been "betting" that homeowners won't be able to refinance into lower interest rate loans--though another sector of the company is responsible for denying or approving ReFi applications.

Is this legal?  Of course it is.  Though it smacks of unethical.

But it  should come as no surprise because:

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