Freddie Mac: Quality & Condition Ratings

[J Grant]

Republicans have sought to privatize Fannie and Freddie for years, noting that the federal conservatorship was never intended to be permanent. They have also blamed these institutions, and their
mandate of making home loans more accessible to lower-income people, for causing the 2008 financial crisis in the first place. This is not true, as Fannie and Freddie's share of the highest-risk category of mortgages actually decreased during the housing bubble.

Who is in the "highest Risk" category, by their definition, is the question

More RW propaganda that seeks to place blame on the poor and /or immigrants

While some programs aimed at income people were in play, the majority of the housing market crash and the bubble was middle to upper-income people and properties, including many new construction luxury condos that were sold to straw buyers, investors posting as owner-occupants, etc. - ever heard of strategic default ? The folks who could afford to pay their mortgage but chose not to By the end of the bubble it was a full-out greed fest, with fake buyers flipping contracts at closing for 50% more etc

All driven by the Republican god of deregulation, which is basically a green light for crime and corruption -we've seen this movie before, will get a re-run soon.

 

[George Hatch]

One metric the bubble guru pointed out at the time was that up to 70% of the mortgage applications had presented at least one serious untruth to the lenders.

 

[J Grant]

One metric the bubble guru pointed out at the time was that up to 70% of the mortgage applications had presented at least one serious untruth to the lenders.

That is possible, though the mortgage lenders did not do much to find out the facts wrt their applicant - then again on many of the loans, at the time, there was no need for facts-just like some people do not need them now.

At the time, a number of loans were no doc, no income verification and 125% LTV. Teaser rates started at 1 or 2%% to qualify for income. Contracts were assigned at closing or pre closing - flipping was not even the property anymore; it was the contract that would be flipped. It was truly crazy. Considering who is going to be in the WH, we might see a repeat/new version of it.

 

[J Grant]

Something that is accurate is exact and true. It's important to be accurate in the kitchen with your measurements and in the courtroom with your testimony.

The adjective accurate comes from the Latin roots ad curare, meaning "to take care," and that is precisely what you do when you make sure something is accurate. You take care to make sure it is perfectly correct: an accurate answer, an accurate headcount, an accurate assessment of the problem. By adding the Latin root in, meaning not, you can make the antonym inaccurate (not accurate).

 

[George Hatch]

An appraisal is an opinion of value. Not a statement of fact. Not just because that's the definition but because an opinion cannot be characterized as a fact.

 

[alebrewer]

I don't know about that... J often characterizes her opinions as fact...

 

[Terrel L. Shields]

Fannie and Freddie's share of the highest-risk category of mortgages actually decreased during the housing bubble.

FNMA didn't lose money on home loans so much as they lost backing these bundled instruments - MBS etc.

Between 2008 and 2012, Fannie and Freddie lost $265 billion, more than 60% of which was due to risky products purchased in 2006 and 2007. Only $47 billion was losses from financing single family homes.

Can you do this for all of your assignments?

Ah, therein lies the rub. Pick 3 and go or make $5 an hour for your time and research.

 

[Terrel L. Shields]

I don't know about that... J often characterizes her opinions as fact...

The purpose of this forum is to change opinions into facts

 

[George Hatch]

FNMA didn't lose money on home loans so much as they lost backing these bundled instruments - MBS etc.

Between 2008 and 2012, Fannie and Freddie lost $265 billion, more than 60% of which was due to risky products purchased in 2006 and 2007. Only $47 billion was losses from financing single family homes.


Ah, therein lies the rub. Pick 3 and go or make $5 an hour for your time and research.

It would be making $5/hour if anyone actually required that mode of analysis. Except that nobody or almost nobody actually does require that.

 

[Terrel L. Shields]

Except that nobody or almost nobody actually does require that.

But if we are supposed to do the maximum effort, wouldn't we do exactly that? Well, close counts in horseshoes and hand grenades they say.