Monday, January 30, 2012

Freddie Mac Bets Against American Homeowners - ProPublica

Freddie Mac Bets Against American Homeowners - ProPublica

"Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages."


Gee. I wonder if there could be a connection between Freddie making it hard to refinance at lower rates, and Freddie selling mortgages and keeping only the income stream from the interest income?

1 comment:

Evan McKenzie said...

From George Staropoli:
"In the movie 'The Ides of March.' the brokerage firm realizes that the market has turned against their buy/sell plans in a very big negative way. They decide to sell the "securities" to anyone they can to get out quick. The firm promises $1 million bonuses for brokers who meet their quota to dump the securities. Wait, that reminds me of something..."