Freddie Conflict of Interest With Homeowners
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http://www.npr.org/2012/01/30/145995636/freddie-mac-betting-against-struggling-homeowners
Article detailing Freddie betting against the homeowner. Freddie has tweaked the system and no HARP refi’s going through.
Gee, where would Fannie go to invest in these goofy pieces of paper??? Hint, it is on the corner of Broad and something in New York City. Who gets the business and the bailouts??? Hint,it is on the corner of Broad and something in New York City. Who creates the product we sell??? Hint, it is on the corner of Broad and something in New York City.
Who appoints the people who run Fannie?? Yahoos in Washington Dumb Cluck USA who get their campaign funds from some folks on the corner of Broad and something in New York City.
Vote in the next election….
Problem is – WHO do you vote for in the next election? They’re all hooked up with the banks and Wall St. That’s where their millions come from – so don’t expect any positive change from the next administration. Me? I’m going with Ron Paul – I totally support his End the Fed idea. Clean house! That’s what we need to do if we expect ANY change in DC, Wall St. or the banking and mortgage industries.
Who concoted buying this type of debt?
This is one of the most idiotic schemes I have ever heard of, and if I can’t refi my mortgage because they want to keep me in it,,,,We have a problem!
Randy
this industry is so messed up
Amen!
I too have not been able to play your viedos this week. Advice would be appreciated.
Use the most recent version of Fire Fox as your browser and make sure you’ve got the most recent version of Adobe Flash installed. Beyond that, if you’re watching from your office, your IT dept may be blocking something so you’ll have to ask them.
Hope it works!
Frank
How many out there have a problem with the GSE’s, and big bank also, “playing the complicated financial game” instead of focusing on the basic principals of the foundation of their companies? So much of the complication in the financial industry seems to resolve around the complications of swaps, derivatives and calls in the financial markets that it makes me wonder if those “tactics” need to be absolved and we need to get back to the basics of business. The following link provides Wikipedia’s definition of derivatives and explains how it is a contributing factor to the problems we are dealing with now.
http://en.wikipedia.org/wiki/Derivative_(finance)
Everyone in our industry needs to understand at least a little bit about this issue and realize it is a major component of the problem, and that by getting back to basics and not participating in these transactions we may find solutions that will be long lasting!
ANother issue with Freddie Mac. Refi Plus allows us to roll in all the closing costs and prepaids into the new loan, Freddie Relief has a cap of $5,000 to be rolled in to the new loan. I am working with a customer who has $10,000 of closing costs and prepaids and I could get him a Freddie Relief loan at 3.875% but he does not have $5,000 to bring to the closing. But by getting him a rate of 4.25% I can get him a borrower credit ( from Freddie) of $5,000 so he does not bring money to closing. So my customer has to pay .375% more on a 30 year loan. Who wins and who loses?
CG
Carlos, what is your base loan amt???
The federal government is the worst with the issue of divided interests and nothing seems to changing.
I hope this thing about Freddie Mac busts right open. I hope the idea of investing in inverse floaters is not too sophisticated for the lawmakers and the general public to understand. I would have expected 30 comments on this topic – and there was one. Just had to tell yet another “millionaire” (1.4 million in assets, vs. the $250k or more income) that he did not qualify for more than a tiny $193k loan even though his credit score is 800. Overlays? Yes, there are overlays, but the bottom line that everyone can hopefully agree with (and Philly Fed President Charles Plosser said it yesterday on CNBC) – Would another 15 basis points lower in interest rates bring about a turn in the housing market? No – because here we are with 4% rates and hardly anyone qualifies. If I was paid a salary to collect all these tax returns and then tell people they don’t qualify that would be one thing – I’m on commission making nothing while the bailed out GSE’s are making sure that its hard as hell to refi??????????
I’m with you, I really want to be positive here, and maybe positive is not just sitting by and letting this country go in the toilet. It has been over 3 years now since we have seen this administration do anything except raise our spending levels beyond hope, song and dance, complain about the previous administration and make more and more negative impact on our business and our personal life and especially that of our Children.
Think about it for a minute. The banks can not make money unless they are able to put it to work, no one can! They need to make these loans as much as we need to get them done. They need stable rules just like we do. Except they have alternatives which pay much better than a mortgage portfolio now so now the money goes there. Hum, I wonder why the Dow seems to be up all the time.
We are being manipulated into a corner which does not and can not work. Just so you know, when we get to the point where none of us can survive it will be blood in the streets and it will be an intentional result of this administration. George Soros just said it is coming very soon in Newsweek. Imagine that! He is even open about it. I wonder why? Doe’s he have an inside track on a plan or something? It is truly amazing how much of this we as a people will put up with. There is no common sense out there any longer. We all just think Uncle Sam is going to fix it. Well, how’s the track record so far? Are we just waiting for the next piece of porgy bate to be handed down so we can fight over it? I am sure when it gets here it will have more rules that make it fail.
The tools to bring us out of this mess are already in front of the congress. It is called a free market income generation and ending a repressive tax system by complete reform.
The latest failure example is the Keystone Pipeline; it would have been a great start. It was vetoed by B.O. Result several Billions of private money gone with the stroke of a pen and still no jobs and no long term benefits like another fuel source to feed our economy. What did that gain anyone? You really have to wonder about the true agenda up there, and what is really happening.
How about the Fair Tax Proposal? It is a best selling book. It is embraced by millions, the most researched plan out there. Has anyone out there read it? Have you written to your congress to support it? Nope, Well, a stupid congress or senate can’t to do that on there own. They need some pushing! This time a lot of it! Then, with luck Frank and Dodd would not be able to create a fiasco and dump it on us that’s if we had a strong economy of course. The “K” street boys would not have any way to manipulate us. Nar might even loose its reason for existence. The Fair tax proposal would just work too well I guess! We would not have 70,000 pages of BS we call the tax code. No compliance costs, you could keep all of your pay check, every week, the underground economy would be taxed, the poor would be taken care of and we would fix Social Security, there would be no tax on savings and investments, there would be no inheritance tax to deal with, and no income tax to pay. Of course if we did that we would not be able to create class envy and we would have unheard of prosperity and would become the beacon of hope for the world again. God forbid.
Then maybe they would not be able to song and dance us into these holes.
Wake up America, it is fourth and goal and we are loosing big time. It’s decision time!
B.O. stinks. We need a new and smaller government.
Right you are. Have you heard B.O.’s latest campaign platform? He’s concerned that the Middle Class is in danger. DUH! His whole secret political agenda revolves around destroying the middle class so that we are all dependent on the government and they can be in total control of every aspect of our lives including how much bread we get. Now he is appealing to the Middle Class as if he is concerned for them. Give me a flippin’ break. This guy will stop at nothing to get what he wants… a one-world government controlled by his truly. Don’t be fooled by the wolf in sheep’s clothing. He cares nothing about any of us. He needs to be gone. I hope Americans are not as stupid as we were four years ago!
I had a couple of problems with today’s show. 1. It’s the investor’s and MI companies that are generally driving the bus on tigher underwriting, not Freddie. I find that the investor overlays are usually causing the problems on my loans, not GSE guidelines. 2. New FHA loans, underwritten with tighter guidelines are the best performing loans out there right now. In addition, they are more profitable for FHA because of the higher MI rates. Therefore, I can’t understand your logic that a new refi program through FHA is going to further deplete the MI reserve fund. If anything, it should do the opposite, help replenish the reserve fund.
help! I have been unable to play your great videos for the last week. I click on the title as instructed but nothing happens. I am not having trouble with other media. Can you help?
Gary:
1: Do to the brilliant work of Barney and the committee to reform they have increased the risk to the investor where they cannot sell the useless paper.
2: The increased MMI is going right down the toilet by covering previous losses and funding more new useless CRA programs.