Friday, June 18, 2010

Dear old Fannie & Freddie



Fannie Mae and Freddie Mac are synonymous with the US housing bubble and the following credit crunch and banking collapse. They were a direct player in lending money to those who couldn't afford housing and were among the first institutions to go down the tubes.

Directors were cooking their books to make their balance sheet look good and as we know they would have disappeared if not for that nice man Barrack Obama bailing them out with borrowed money.

I knew they were still around in some capacity but I had no idea they were still up to their old tricks.

An email from their PR people to me (not sure why it was sent, it was unsolicited):

Resource Center: 1-800-732-6643

Contact: Jason Vasquez

202-752-2878

Number: 5065

Date: June 17, 2010

Fannie Mae Launches New Series of “Five Step” Guides to Help Educate Homeowners and Potential Home Buyers

First Three Tip Lists Focus on Home Buying, Housing Counselors and Mortgage Modification Scams

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today launched the first three in a series of “Five Step” guides, offering useful information for current homeowners, those interested in purchasing a home and homeowners who may be struggling with their current mortgage. Each guide focuses on a different topic and provides five specific tips.

The first three guides released today provide tips on the following subjects:

· Actions to Take Before Buying a Home - As the housing downturn has shown, homeownership is about more than buying a home. It’s important to make sure you can keep your home over the long-term. Fannie Mae offers five steps to help those thinking about buying a home select the right house for them and understand the affordable financing options that can help make homeownership a long-term success.

· How Housing Counselors Can Help – Whether you’re thinking about buying a home or you’re a current homeowner, Fannie Mae highlights five key ways housing counselors can help make homeownership successful for you. Housing counselors offer professional advice, ensuring you can sustain your home purchase over the long term and providing guidance if unforeseen circumstances make it difficult for you to continue paying your mortgage.

· Protect Yourself from Mortgage Modification Scams – Mortgage modification scams can occur when unscrupulous people prey on borrowers who are struggling to keep their homes. While they promise to help, the people who perpetuate mortgage scams do little to no work, charge excessive fees, and use tactics that often put the homeowner at greater risk of losing their home. If you’re modifying your mortgage or facing foreclosure, Fannie Mae offers five keys ways to protect yourself from mortgage rescue scams.

The guides are available at http://www.fanniemae.com/kb/index?page=home&c=fivesteps.

###

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.



It seems Fannie is still chasing those individuals who are unable to pay off housing over the long-term and therefore it wont be long before the 2008 crash and what followed will happen again.

Fannie of course was set up after the Great Depression in the early 1930s and Freddie in the 1970s, to do exactly what it is doing today.

I am not surprised by the stupidity of the repetition of this nonsense but am constantly amazed that the consequences of not learning from the past are forgotten so quickly.


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Serving Two Masters, Yet Out of Control: Fannie Mae and Freddie  Mac
Serving Two Masters, Yet Out of Control: Fannie Mae and Freddie Mac by Peter J. Wallison
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