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With the war on the rich, big oil, women and the Supreme Court not gaining enough traction, last week the administration tacked in a different direction…home mortgages.
On this day of the Florida primary, more details are surfacing concerning Newt Gingrich’s interesting relationship with Freddie Mac. You might call the relationship incestuous, but it’s not lobbying and it seems to be perfectly legal. Instead of historian, call him a team motivator.
The housing market collapsed in 2008. Depending upon your political persuasion, we either got there because of greedy bankers, or because the federal government (i.e., Fannie Mae and Freddie Mac) lowered credit standards. Apparently, your government is urging a repeat performance.
Let me introduce you to Ed DeMarco. He is the acting director of the Federal Housing Finance Agency, which was created in 2008 to oversee Fannie Mae and Freddie Mac. Mr. DeMarco has held this position since 2009 when the original director left.
On Friday, the Securities and Exchange Commission brought civil fraud charges against six former executives of Fannie Mae and Freddie Mac. The complaint charges that the executives knowingly misled the public concerning the extent of subprime and Alt-A (a step above subprime) mortgages that they held.
Anyone even casually following the financial crisis, precipitated by the burst in the housing bubble which was inflated by sub-prime mortgages (low interest, no interest, no money down mortgages sold to people with sub prime credit), should know that “ground zero” in this entire meltdown was the quasi government banking institutions Fannie Mae and Freddie…
Yes, I am old enough to remember the quiz show, “The $64,000 Question”. Of course, that was back in the day when $64,000 was a fortune. Recently, Fannie Mae and Freddie Mac spent 10 times that amount sending 100 employees to a “mortgage conference.” I’m not entirely sure what those things are, but, let’s put this in…