Fannie And Freddie In 2019

[Mike Kennedy]

National Mtg News

https://www.nationalmortgagenews.com/list/5-questions-facing-fannie-mae-and-freddie-mac-in-2019

 

[Joe Flacco]

I'm very curious about what they got up their sleeve with GSE's.

 

[Renee Healion]

Very interesting article on that site about Deutsche Bank

"Deutsche Bank has decided that none of the more than $4 billion it promised to spend on consumer relief after the global mortgage crisis will go to distressed U.S. homeowners, according to a report by the monitor of the 2017 settlement"

"The Justice Department was criticized over earlier mortgage settlements that allowed banks to use settlement money to fund new loans, rather than providing help to homeowners affected by the financial crisis. The handful of crisis-era bank investigations settled by the Trump Justice Department have included no money for consumer relief."

https://www.nationalmortgagenews.co...reverses-pledge-to-help-distressed-homeowners

 

[Joe Flacco]

Deutsche Bank is in survival mode. I think they probably done.

 

[Renee Healion]

"The negotiations over the U.S.’s investigation of the bank spooked investors, with initial reports saying it could cost $14 billion to resolve. Years of low share prices and layoffs have prompted questions about whether Deutsche Bank needs to be combined with another German bank. The bank is also awaiting the outcome of U.S. probes, including into whether it helped wealthy Russians launder billions of dollars in illicit funds, while Democrats have begun digging into the bank’s relationship with President Donald Trump."
(same source)

 

[Elliott]

American Banker:

"WASHINGTON — All eyes will soon be on Mark Calabria.

The Trump administration’s nominee to serve as director of the Federal Housing Finance Agency, Calabria is set to testify Thursday before the Senate Banking Committee. The nomination hearing could provide an important window into the White House's plans for a future housing finance system, including how reforms might be carried out.

Senators almost certainly will grill Calabria on what he knows about an administrative framework that acting FHFA Director Joseph Otting has promised is forthcoming, but he will likely have to convince lawmakers that Congress still has a role in reforming the government-sponsored enterprises if he hopes to secure his confirmation.

Calabria will also have a tall order in tempering past criticisms of Fannie Mae and Freddie Mac, especially if the administration ultimately seeks to recapitalize the GSEs under his watch. Before joining the Trump administration as Vice President Mike Pence’s chief economist, Calabria was the director of financial regulation studies at the Cato Institute, where he regularly advocated for constraining the footprint of Fannie and Freddie.

"As the members of the Committee are perhaps aware, I have an extensive record of writings in the area of mortgage finance. I have on a few occasions expressed strong opinions on the history and future of our mortgage finance system," Calabria said in his written testimony, published on Wednesday in advance of the hearing. "I have most definitely expressed, and express here today, a frustration with the current state of our mortgage system and the need for reform."

"Despite that frustration, I want to very clearly state to this Committee, that if confirmed, my role as Director of FHFA is to carry out the clear intent of Congress, not to impose my own vision," he added."


Will Calabria go after appraisals or the big tunas, FNMA, Freddie, and FHA? Stay tuned.

 

[djd09]

Poor fannie. Cutting a 3.2 billion dollar check to the treasury for q1 2019. Life must be tough.

And behind door number two, A 650 million dollar new glass office building. jeez.

 

[Evincere]

2013
Fannie Mae exec fired amid kickback scandal

When we determine that our controls can be strengthened further, we implement changes," the statement said. "For example, we have changed our property assignment process so that our sales associates will not make assignments to brokers, reducing the potential for conflicts of interest."

“Another former foreclosure specialist in Irvine, Cecelia Carter, also described the kickbacks as widespread.”

“Carter said Fannie Mae officials altered findings to make themselves look better in reports that ultimately were passed up to Congress. She said she began alerting Tiegen to kickbacks as far back as 2009, and that she identified Granillo as involved in 2011.”

“An internal Fannie Mae investigation said it could find no evidence to support her allegations.”

https://www.latimes.com/business/la-fi-fannie-mae-fired-20130614-story.html


2019 - Former Fannie Mae employee found guilty of making millions on shady foreclosure sales

Ordered to forfeit a property she bought with a duffle bag full of cash

A former Fannie Mae employee is now facing 40 years in prison after being found guilty of accepting millions of dollars in bribes and kickbacks in exchange for selling Fannie Mae-owned foreclosures for less than market value.

Back in January 2018, Shirene Hernandez was charged with accepting bribes for steering foreclosures to certain brokers and even allegedly buying some foreclosures herself at below market value

https://www.housingwire.com/article...of-making-millions-on-shady-foreclosure-sales

 

[nicholz12]

Poor fannie. Cutting a 3.2 billion dollar check to the treasury for q1 2019. Life must be tough.

And behind door number two, A 650 million dollar new glass office building. jeez.

You got to love it huh!

 

[Joe Flacco]

I like the ideas floating around about shrinking the GSE's and other banks creating products to fill the void. I am not a housing finance expert but it sounds like it would result in lower rates for people with good credit similar to how jumbo rates are lower than GSE rates.