In response to:
It appears the market wants to believe the lies. FNMA is using the force of the federal government to foreclose on homes and sell “Notes” they do not nor could not own. With the bailout FNMA became the new owner of the toxic fraudulent mortgages of CWHL and all others – and knowingly could have prevented much of the fraud if they would have reported Taylor Bean and Whitaker’s fraud – but instead of reporting the fraud they purchased it! That is how they became the heart of the american housing finance system – the black dead heart of corruption.
I am struggling wondering what corruption will be next from our government – which at this time to many, it is obviously run by the bankers and investor class. The parties used and are using FNMA to collect on their predatory loans – denying homeowners relief from said toxic mortgages – especially in non-judicial states. And as soon as that is accomplished the parties want to go back to business as usual – I CALL BULL SH*T.
The article says
The two enterprises are at the heart of the American housing finance system: they buy mortgages from banks and other lenders, enabling lenders to extend credit for longer periods than would be possible if they had to keep the loans on their own balance sheets, and, presumably, open up the housing market to a larger swath of the population.
Well, they weren’t before the collapse – they were part of the REMIC fraud – purchasing certificates from CWABS and others for investments when they could no longer compete with the likes of Countrywide Home Loans, Inc 3500% profits – unseen before in real estate – BECAUSE IT WAS FRAUD.
My guess is that REMICS were empty and they did not own the loans and that was part of the scheme – any legal remic setup would have had an assignment to the REMIC trust that owned the note and NOT rely upon MERS, again MERS is part of the scheme and was needed to perform the fraud and now to cover it up.
Treasury paid full price to take over the toxic mortage securities – then kept all settlements and other issues under their control and kept confidential. Countrywide and others most likely refinanced GSE loans without paying the GSE loans off – a bit more criminal than just originating bad loans – and calling them good – then the parties could use the “new notes” to create new REMIC pools and make unheard of profits. All without actually having to put up the cash – only a small amount of refinance cash bait was needed – and at first the title owners had equity to fund. The “bank” then just needed to pay the GSE what they expected each month but got to make full profit of the new note and securitization. Clever. But like all good ponzi schemes it ended when there were no longer any GSE underwritten loans left to refinance. But, we will never know what happened so history could very well repeat itself.
Does anyone believe we need these agencies. Especially after the fraud committed at FNMA and the accounting scandal that no one could ever figure out in a million years.