Housing
Robert Shiller on Housing Market, Economy – WaPo
Freddie Mac Betting Against Struggling Homeowners – NPR
In December, Freddie’s chief executive, Charles Haldeman, assured Congress his company is “helping financially strapped families reduce their mortgage costs through refinancing their mortgages.”
But public documents show that in 2010 and 2011, Freddie Mac set out to make gains for its own investment portfolio by using complex mortgage securities that brought in more money for Freddie Mac when homeowners in higher interest-rate loans were unable to qualify for a refinancing.
Those trades “put them squarely against the homeowner,” PIMCO’s Simon says.
The NPR witch hunt of Freddie Mac – HousingWire
Hate to say it NPR and ProPublica, but the same thing is happening at Ginnie Mae and Fannie Mae and just about everywhere a home is bought, sold and financed.
But not in the trite, bombastic language that now dominates mortgage finance news.
The biggest tell of this witch hunt is the lack of new evidence to back the claims of NPR and ProPublica. Yes, Freddie Mac securitizes loans. Yes, Freddie Mac doesn’t sit on those loans.
Also, Freddie Mac once more freely allowed lending to homeowners. That landed it basically where it is now. More glaring, is the lack of mention of prepayment risk.
Even more importantly, the very federal conservatorship status that both Fannie and Freddie are under is to protect their assets. That means keeping performing loans right where they are — in a position that most efficiently monetizes loans for investors.
Canada’s Subprime Crisis Seen With U.S.-Styled Loans – SF Gate
A Brief History of the Housing Bubble – O.C. Housing News
Economy & Europe
Greek Debt Talks Risk Derailing EU Summit- Bloomberg
An economy crumbles – Economist
U.S. Banks Tally Their Exposure to Europe’s Debt Maelstrom – NY Times
Misc.
How to Research a Slumlord - Dr. Pop (ht Patrick)
The Best Alternative Financial Blogs – CNBC
Oakland police, Occupy protesters clash – scores arrested – SF Gate
Just For Show – The Onion
This newly renovated building is the perfect place for dates to drop you off, and a photograph of its exterior is a great way to prove to your parents that you’re doing fine on your own. $200 a month. Living on property not allowed. Reference number 84233
January 30, 2012
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