Fannie Redux – There They Go Again
During 2004-2007, Fannie Mae and Freddie Mac stockpiled mortgages, many from the widespread practice of “liars loans” (i.e., no-documentation or low-documentation applications that skipped over...
View ArticleHandling the Return of Housing to the Private Sector
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) buy mortgages from banks and thrifts then securitize them for sale. These mortgage...
View ArticleExpecting a Crush of Lenders for Low Down Payment Mortgages?
The most prominent obligation for federal bank regulators – the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Controller of the Currency – is to avoid another taxpayer...
View ArticleFannie Mae, Freddie Mac, and Earthquake Insurance for Mortgages
Could taxpayers be on the hook for yet another bailout? Representative Sean Duffy and Senator Tim Scott asked the Federal Home Finance Agency to provide information on the exposure of earthquake damage...
View ArticleLoophole Leaves Taxpayers on the Hook for Earthquake Damage
The vast majority of homes in earthquake-prone areas lack any insurance protection against earthquakes, exposing American taxpayers to hundreds of billions of dollars of risk if disaster strikes. And...
View ArticleACI Files Comments Regarding Proposed Rules for Freddie Mac and Fannie Mae
RE: Comments to RIN 2590-AA95 Dear Mr. Pollard: In these brief comments, the American Consumer Institute (“ACI”) seeks to respond to the FHFA 2020 Notice of Proposed Rulemaking. ACI is a nonprofit...
View ArticleAn Upside-Down Mortgage Rule
People go their whole lives with the understanding that financial responsibility equals good credit and good credit equals good rates on a home loan. It’s simple: If you pay your bills (on time), you...
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