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Freddie Mac Fesses Up!

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Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Freddie Mac's new financial officer promises full disclosure

http://www.adn.com/24hour/business/story/9...p-6641787c.html

By MARCY GORDON, AP Business Writer

WASHINGTON (July 22, 4:04 p.m. ADT) - The new chief financial officer of housing finance giant Freddie Mac assured Congress on Tuesday that the company will fully disclose financial information as it remedies the defects in its practices that led to its accounting problems.
"We know how to fix these shortcomings - and we will," Martin Baumann told a House subcommittee hearing. "We will emerge stronger than ever, with significantly improved accounting and disclosure practices that will meet the highest standards. ... There's no excuse for Freddie Mac's accounting problems other than it didn't have the right controls in place."

It is amazing what a couple of nights listening to rock music without sleep will do to a person's spirit of cooperation. Hey! A little light torture never hurt anybody.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Details Released on New Bill To Better Regulate Freddie Mac

http://www.rismedia.com/index.php/article/...eview/4460/1/1/

"These three institutions, Fannie, Freddie and the Federal Home Loan Banks, represent over $2 trillion in debt outstanding and have trillions of dollars in derivatives portfolios. We need nothing short of a regulator that will ensure best practices of interest rate and credit risk management in the housing finance sector. Putting all three under one umbrella will allow their regulator to see the complete secondary mortgage market picture," said Royce.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
The thing that scares the hell out of me about this situation is the timing of all of this. Counting the link Pam just posted that makes five news headlines on this subject I have seen this week. It is kind of like this: You turn the TV on one night and the programming is interrupted by a special report from the president live from the White House. He starts off by saying: “There is no reason for alarm folks..” My response is: “If there is no reason for alarm, then what the hell are you doing interrupting Opra? We were all right in the middle of a good crying spell.” Same goes for this Fannie & Freddie situation; if somebody somewhere doesn’t know something about something the rest of us don’t know about, then what the hell is this all about. Get the drift? As old Tennessee Ernie Ford use to say: “There is a skunk in the wood pile.”
Ask youself this question: "If something was seriously wrong that could have a serious impact on the real estate market, do you think the government would let it out of the bag?" At lunch last week I ran into the two local newspaper editors that are in charge of editorials and the news room. They ask my opinion of what was going on in the local market and I told them it was weak & bleak. They said: "Well we called the president of the Board of Realtors and he said everything was peachy." Can you hear the NAR office coming out with something like this: "Ok folks, we are headed for an abbyss. Fannie and Freddie are screwed royally!"
Guess what the lead front page story in todays local paper is? "Rumors of a mass exodus from the Regional Mall unfounded. Nothing but lies started by some busy body with nothing better to do. Those vacant spaces are all just part of the cycle of growth." A new era is dawning. Yea, right!

PS: Guess who was quoted as the source of the new era dawning? You guessed it, the store managers of the remaining Mall stores. There you have it folks, another totally objective and unbaised report on the local economic picture.
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Now if Freddie would just make their appraiser guidelines readily available without us having to pay through the nose for them.

I'm dealing with a "private road" issue on an appraisal with one of my best clients that works with Freddie. Supposedly the UW called Freddie about my appraisal and Freddie told the UW that I "MUST" use comps with private roads. I did not use comps on private roads because there weren't any good comps available although my market area has a lot of houses on a lot of private roads, with no significant market reaction to private roads.

I asked my LO (a good one, just got the Affiliate of the Year award from the Board of Realtors) to get me a copy of the guidelines from her underwriting department. The response from the UW was "we don't have the guidelines." The underwriting department doesn't have a copy of the Freddie guidelines they use for underwriting purposes!!! What kind of a joke is that?

I told the LO I MUST have a current copy (I have an old copy of the guidelines) of the referenced section that says I MUST use comps on private roads. Three days and counting since my request.

Stay tuned :(
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Dave:
When I hear a client make a statement like use comps on a private road, here is how my brain interprets the request: "This idiot has never done an appraisal in his/her life or they would not make any such idiotic request. The idiot must live in Alice and Wonder Land. Further, if I came up with 50 comps on private roads the idiots would still not have any idea what the hell I had done so what is the point of the whole process to begin with." I know an old appraiser that has been drawing a disability income for 20 years and doesn't really give a darn if he loses his license or not that has a solution to this type problem. If the uw want the comps on a private road, hey, the comps are on a private road. No problemo. If the uw wants comps on a mountain, hey, no problemo, the comps are all right on the crest or where ever the hell you want them. Signed, sealed, and certified. Never had a problem as I know of.
 
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