FHFA Sends Notice to Federal Register on Use of Eminent Domain to Restructure Performing Loans
Washington, DC – The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a Notice indicating its concern with the proposed use of eminent domain to restructure performing home loans and inviting public input.
As conservator of Fannie Mae and Freddie Mac and regulator of 12 Federal Home Loan Banks, FHFA has significant concerns about the use of eminent domain to revise existing financial contracts and the alteration of the value of the companies’ securities holdings. FHFA has determined that action may be necessary on its part to avoid a risk to safe and sound operations at its regulated entities and to avoid taxpayer expense. Additionally, FHFA has concerns that such programs could negatively affect the extension of credit to borrowers seeking to become homeowners and on investors that support the housing market.
FHFA is accepting submissions from the public on or before Sept. 7, 2012. These may be sent to
eminentdomainOGC@fhfa.gov or FHFA OGC, 400 Seventh St., SW, Eighth Floor, Washington, DC 20024. Submissions may be made public.
Copy of the notice below…
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4closureFraud.org
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Use of Eminent Domain to Restructure Performing Loans
They still don’t say what exactly Freddie and Fannie have done with “the loans.”
Check this nugget:
“The Enterprises purchase a large portion of the mortgages originated in the United States [AND DO WHAT WITH THEM????] and they hold private label mortgage backed securities containing pools of non-Enterprise loans [BUT ARE THEY REALLY “MORTGAGE_BACKED”???] . The Banks likewise have important holdings of such securities. [SO NOW THE FHFA IS ADVOCATING FOR THE BANKS PRIVATE PROFIT POSITIONS AS WELL???] In addition, the Banks accept collateral that consists of mortgages of member financial firms pledged in exchange for advances of funds. [SAY WHAT??? DO YOU MEAN THEY REGULARLY ENGAGE IN “TABLE FUNDING,” A DECEPTIVE LENDING PRACTICE???]
From the ‘finance’ blogs: “He’s a good bureaucrat.” “Sensible” “Upstanding” “American courage”
Let me add a few: “Thank goodness we have a fall guy.”
“Phew! we thought homeowners were going to actually get some leverage in the public sphere”
“All the money we have going to the Obama re-selection, this protects our ponzi scheme better than a three ring circus”