Fannie Mae and Freddie Mac | An Inconvenient Truth

An Inconvenient Truth

There is so much about Fannie Mae and Freddie Mac that we should be angry about.

In their heyday, these strange hybrids — part corporation, part government agency — were the biggest bullies in Washington, quick to bludgeon critics who dared suggest that their dual missions of maximizing profits while making homeownership affordable for low- and moderate-income Americans were incompatible. They steamrolled their regulator and pushed back at any suggestion that their capital was inadequate.

For years, they essentially wrote most of the legislation that affected them, which they larded with loopholes. In the mid-2000s, they had giant accounting scandals. Eventually, their quest for profits led them to make a belated, disastrous foray into subprime mortgages, which ended with their collapse, and which has cost taxpayers about $150 billion. Tragically, Fannie and Freddie could have led a housing recovery — if they hadn’t become crippled wards of the state instead.

Yet these real sins have been largely overlooked in favor of imagined ones. Over at the conservative American Enterprise Institute, two resident scholars, Peter Wallison and Edward Pinto, have concocted what has since become a Republican meme: namely, that Fannie Mae and Freddie Mac were ground zero for the entire crisis, leading the private sector off the cliff with their affordable housing mandates and massive subprime holdings.

The truth is the opposite:

Rest here…


27 Responses to “Fannie Mae and Freddie Mac | An Inconvenient Truth”
  1. John Sumnet says:

    Anyone reading Webber? There she goes again with “viable borrowers” , and whether it’s “worth it” to throw victims a bone, isn’t that just heartwarming?
    A leading commentaries from an ex-Wall Street hustler who assumes origination fraud, securities fraud, fraud-fraud-fraud, somehow represents a valid contract. There’s a reason pundits continue this vicious lie, because if they don’t TBTF wil fail.

  2. Lesliane Bouchard loved being a junior high school teacher.
    First Mortgage Corporation: Don’t foreclose on disabled teacher

    But after a car crash fractured her spine, she had to leave her job. Now, she might lose her home as well — First Mortgage Corporation wants to foreclose.

    The worst part is that Lesliane has been approved for something called the Hardest Hit States Fund — a federal government program that would pay down enough of the principal of Lesliane’s mortgage to allow her to keep her home. But First Mortgage Corporation refuses to participate in the Hardest Hit States Fund program, choosing instead to force Lesliane out of her house. If the company participated in the program, it could profit from Lesliane’s mortgage payments, and Lesliane could keep her home.

    Lesliane’s daughter, Kristiane Chappell, has been fighting tirelessly to help her mom keep her house. But time is running out, and Kristiane is running out of options.

    That’s why Kristiane started a petition on asking the First Mortgage Corporation to let Lesliane stay in her home. Click here to sign Kristiane’s petition right now.

    Lesliane’s attachment to her home is more than sentimental — it’s vital to her health. Lesliane is completely bedridden, and relies on her adult children to help her every day. “Mom’s current home is about the same distance from all of her adult children, enabling us to share the responsibility of caring for her,” Kristiane explains. “If she loses her home, it will be impossible to split duties, making her care much more difficult, and more expensive.”

    There is some good news: So far this year, at least six homes have been saved from foreclosure because of petitions on Companies like First Mortgage Corporation are terrified of having their images tarnished, so when people come together to shine spotlights on their bad behavior, they tend to cave very quickly.

    Time is running out to save Lesliane’s home — please sign her daughter Kristiane’s petition right now:

    Thanks for being a change-maker,

    – Jess and the team

  3. kravitz says:

    Some news since the morning…

    BofA Said Close to Settling Fair-Lending Probe Into Countrywide
    The lawsuit involves redlining.

    And Kamela Harris strikes fraud again…

    Fannie Mae, Freddie Mac Sued by California Attorney General
    “Harris wants to know if drug dealing and prostitution occur in foreclosed homes owned by Fannie Mae, whether taxes are being paid on those houses, and whether military families have been illegally evicted by loan servicers, according to the lawsuits.”

    Sounds like she wants to make sure servicers keep the joints up. Kinda like making it a bit less profitable to foreclose. Or reminding Freddie&Fannie the idea was to keep the neighborhoods viable in the first place.

  4. Sarah Frances says:

    Homeowners should be able to file FOIA requests, collectively sue individuals at F n’ F, and most importantly have access to valuable information that clearly shows they enabled a wave of loansharking, a MERS foreclosure system and constant lobbying to destroy regulations. Oh but no! Once in receivership, we’ll never see where the bodies are actually buried. F n’ F aren’t required to answer FOIA requests, nor are they required to tell the truth.

  5. Ali says:

    Does anyone know if BOA can still be tring to forclose in the name of “Countrywide”? I thought we put a fork in them along time ago!

    • lvent says:

      Ali, I didn’t think Countrywide still existed..Didn’t BOFA buy them and their toxic debt? I sn’t AG Schneiderman and suing BOFA over their Countrywide loans?…You can probably Google Countrywide and find out what you need to know.

  6. Lindfa says:

    THANK YOU ALL. My foreclosure was resolved with the following GRANTED by the judge: Order on Plantiff’s Motion to Dissolve Lis Pendens, Dismiss Complaint, and Release Original Recorded Mortgage, and I did it all pro se with the information from this website. But it is still crazy considering the mortgage servicing company, OCWEN, calls me daily. THANK YOU, THANK YOU, THANK YOU!

  7. Ali says:

    Keep it coming IVent, I wouldn’t know where I would be without your courage and experiebce with all this crazy shit thats going on. And it helps because I understand you are in IL. You have helped many people. Thats what thaey are mad about. Funny I got the same call this morning only I told the collector or who ever the hell they are the same thing except I added tthat they should be ashamed of themselfs and I don’t even know they could even look at theemselves in the mirror and more.

    • lvent says:

      Thanks Ali…These crooks can’t even knock it off at Christmas time..They are rotten to the core, they have no souls…I am glad you told them!

      • lvent says:

        Hey everyone, I found and interesting article while I was doing research on what defenses I have in my fraudclosure. The article states”
        When the Government controls the loan its actions are subject to the protection of the due process provision of the Fifth Amendment of the Constitution.
        This calls into question the use of non-judicial foreclosures as there is no opportunity to be heard and notice is usually deficient, or at best, minimal. See 7 U.S.C. 2000…

        I live in a Judicial state but ,I thought this thinking could help someone in a non-judicial state…I never believed non-judicial foreclosures could possibly be Constitutional…or legal. I feel the same way about rocket dockets and the fact there are virtually no attorneys who are willing to fight for the property rights of the people…If ALL of the attorneys really got on the side of the people, that would be the end to fraudclosures nationwide!

  8. lvent says:


    • lvent says:

      Interesting report from my local news..Nationwide Mortgage Defaults and Credit Defaults are on the rise…Stick it to them America! They caused this mess by gambling with nothing to back up those gambles!!!!!

      • lvent says:

        The Truth is it is really Wall Street, the GSE’s and the Banks who can’t pay their bills…They were allowed by the Politicians to ring up the taxpayers credit card with $700 Trillion in mortgage derivatives fraud…! They are insolvent on paper but they are also worth trillions that they have hidden in overseas accounts and in investments in OTHER COUNTRIES…..!! This was an evil plan hatched by the NWO order to bankrupt and steal everything from us…for their massive fraud debts that can never be repaid..! They want to usher in their NWO into America to “fix” the problems they created…SCREW THEM!! It is up to all of us, as one nation to stop conforming and complying with this illegal and unconstitutional tyranny……! This is a Hitler Plan, and if we don’t unite and stop cooperating..what comes next will be worse than anyone could ever imagine…! Stop paying and feeding the beast who set us to fail and robbed us!…the NWO, the ruling elite are the true haters of freedom!..who hide behind politicians and pose as reputabale financial institutions…it is all a sham and a fraud! A put on…! They create all of the wars, debt, hunger, poverty and strife! They try to make us “think” they own us…that is a BIG LIE….It is the very criminal financial institutions that they own, who owe too much debt and they have all made hundreds of trillions off of that fraud..! They have more money than they will ever need or use, yet millions starve and die of hunger, malnutrition and disease that they can cure or prevent…! The local Catholic Churches cry poor parish and steal from the poor to feed the poor they create!….I went by Catholic Charities and saw the line down the block of people who are waiting in line to be fed by these greed y bastards who caused this…They could afford to feed, clothe and administer medical care and prevention to the world for decades and still never be broke….! Make the Politicians and the financial criminals pay!

  9. Bruce says:

    I would post a comment, but it seems like this has become a private forum for “IVENT” which has resulted in few if anyone really paying attention.

    • lvent says:

      Grow some Bruce…!

      • lvent says:

        Bruce, you obviously have nothing relevant to say or you would just say it…and BTW, I don’t care what you think..!

      • lvent says:

        I will be here posting THE TRUTH….until all of the crooks who caused this are held accountable….!

    • leapfrog says:

      Oh, brother.

      So what if lvent wants to comment? Its not like there are a finite number of comments available and she is stealing all the thunder and limelight.

      If you’re fighting foreclosure fraud you really really ought to develop a much thicker skin. You’re going to need it.

      • lvent says:

        Thanks leapfrog. We always know we are getting under someones skin when the trolls start showing up…There is plenty of room for posting…unlimited space…I don’t believe that is Bruce’s problem..He could be a friend of Jim Cramer….? I am sick of Cramer’s rude remarks about homeowners…he is a mouthpiece for the enemies of America…! JIM CRAMER IS NO MORE THAN A SMOM/VATICAN/JESUIT PERP…A GOLDMAN SACHS BOOT LICKER!!

    • Joan says:

      No you are wrong. I try to read everything he says and I tried to post but my system wasn’t working right. I did not know IVENT was in IL, and I would appreciate it if IVENT would send me an e-mail so I could talk to him. I too thank you for the info and hope you keep on talking even if I do not hear from you thru my e-mail, which is Thanks

  10. Karen Rodgers says:

    This is bad news, because Joe Nocera, Kevin Hall – and other mainstream hacks are all coming to defend Fannie Mae, when Fannie knew full well they were underwriting crooks.
    The AEI is a propoganda outlet, as sometimes the NYT is, and Nocera doesn’t have it right either. Why are Fanny’s goons helping banks throw people out of their houses? Doesn’t this cover up for the Banks crimes?

  11. lvent says:

    I am sick and tired of the ad for the ridiculously easy trick homeowners are using to pay off their homes in half of the time…OUR HOMES ARE PAID FOR…MAINSTREET FUNDED THEIR ENTIRE CRIMINAL MORTGAGE FRAUD OPERATION AND THEIR ILLEGAL BAILOUTS…… ALL OF THESE CROOKS, THE POLITICIANS, THE CEOS OF THE GSE’S AND WALL STREET…. MADE HUNDREDS OF TRILLIONS OF DOLLARS OFF THE BACKS OF ALL OF US GAMBLING WITH THE HO– USE MONEY, THE PEOPLES MONEY!!!!…The pretender lender who I am fighting in fraudclosure court, called me today to ask me if I was interested in a loan mod?…I told them…I already went that route…and you people told me the U.S. TREASURY DENIED ME A LOAN MOD!….since that fiasco, I did my homework, and guess what I found out…? You people committed fraud and forgery in my name, and not only that, I see NO PROOF that I owe you any money…so because of that, I will continue to fight you through the court system…to which the so called “default servicer” replied, ok then, you have a nice day….Dirty crooks, whats the matter? Can’t fraudclose because you don’t have the proper docs…? I want them all to go to prison, starting with the Politicians who allowed this…They make Blago look like a saint!!!

  12. lvent says:


  13. lvent says:

    Who in the hell does Jim Cramer of CNBC think he is? I am sick and tired of this little peon NWO perp talking everyday about how we are living in a SQUATTERS ECONOMY and people who have been in their homes for 700 days squatting are moving in to apartments…F–K HIM…None of them would have or be anything without MAINSTREET TO CREATE WEALTH FOR THEMSELVES OFF OF….AND ROB FROM…THEY ARE ALL A BUNCH OF….F–CKING CROOKS…!!!

  14. Vincent G Redgo says:

    They enabled (among others) massive fraud far and wide. Fannie Mae, owned and operated by Wall Street Banksters. Their godd#$n henchmen are still throwing people out of their houses, on our dime!
    As long as the press continues to beat around the bush, to play the blame game, to not report, to not investigate, to point the finger in different directions, we’ll never have proper justice. Make some noise!!! Occupy FANNIE!

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