Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Biggest mortgage lender taps $11.5 billion credit line

NEW YORK — The nation's largest mortgage lender borrowed $11.5 billion from a group of 40 banks to fund loans, in a move that shows just how deep the lending crisis has become.

Countrywide Financial Corp. said Thursday it made the move amid a credit crunch that has driven a number of its smaller peers to bankruptcy. Shares opened down more than 12 percent.

"Countrywide has taken decisive steps which we believe will address the challenges arising in this environment and enable the company to meet its funding needs and continue growing its franchise," Countrywide President and Chief Operating Officer David Sambol said in a statement.

The credit worries have grown as the secondary market for mortgages all but disappeared in recent weeks. Investors have worried about the value of loans and rising delinquencies and defaults.

Mortgage lenders rely on the secondary markets to borrow money to make more loans. The problems started as subprime mortgages — loans given to customers with poor credit history — started going delinquent and defaulting at faster rates.

The problems have spread to the broader mortgage market, making investors nervous about nearly all types of loans that cannot be purchased by Fannie Mae or Freddie Mac.

Such "conforming" loans are considered safer because Fannie and Freddie are government-sponsored entities. Countrywide said some 90 percent of the loans it originates from now on will be conforming loans or will meet its internal bank criteria.

By adjusting its product mix to originate Fannie and Freddie-approved loans almost exclusively, Countrywide will be cutting out most subprime, alt-A and jumbo loan products.

Alt-A mortgages are given to customers who either have minor credit problems or who cannot provide full income documentation required to get a traditional prime loan. Jumbo loans are mortgages for more than $417,000, the cap at which Fannie and Freddie will purchase loans. Jumbo loans typically are given to customers with excellent credit history.

On Wednesday, a Merrill Lynch & Co. analyst downgraded Countrywide to "Sell," just days after calling it a "Buy," attributing the change to the rapid deterioration of the credit market. Friedman, Billings, Ramsey Group Inc. said Thursday a continued liquidity crunch for more than three months could send Countrywide into bankruptcy.

Asian stocks plunged overnight and European markets fell sharply Thursday as U.S. credit worries continue to spread to other countries.

Credit rating agency Moody's Investors Service downgraded Countrywide's senior debt rating to "Baa3" from "A3," citing Countrywide's funding problems.

A ratings downgrade essentially makes it more expensive for a company to borrow money. Countrywide could be further downgraded if it continues to face liquidity problems, Moody's said in a statement.

The new rating is Moody's lowest investment-grade mark. Any downgrade would take Countrywide into "junk" status, which would keep many large institutional investors from owning its debt.

Countrywide shares fell $2.64 to $18.65 in early trading, with more than 12.6 million shares turning over in the first two minutes of trading.


 
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Countrywide Borrows $11.5B From 40 Banks

By STEPHEN BERNARD,
AP
Posted: 2007-08-16 09:39:22
 
Sorry, i thought I had copied the source.  From AOL
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Not only did they borrow the $11.5B but they are attempting to evolve into Countrywide, FSB. If I'm not mistaken, this places them under different jurisdiction.
 
http://about.countrywide.com/PressRelease/PressRelease.aspx?rid=1041245
 
 
CALABASAS, Calif., Aug 16, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Countrywide Financial Corporation (NYSE: CFC) announced today that it has supplemented its funding liquidity position by drawing on an $11.5 billion credit facility. In addition, the Company has accelerated its plans to migrate its mortgage production operations into Countrywide Bank, FSB.

"As we have previously discussed, secondary market demand for non-agency mortgage-backed securities has been disrupted in recent weeks," said David Sambol, President and Chief Operating Officer. "Along with reduced liquidity in the secondary market, funding liquidity for the mortgage industry has also become constrained.

"For many years, Countrywide's liquidity management framework has focused on maintaining a diverse, multi-layered assortment of financing alternatives," said Sambol. "A primary component of this framework is a committed, unsecured credit facility of $11.5 billion provided by a syndicate of 40 of the world's largest banks. In response to widely-reported market conditions, Countrywide has elected to draw upon this entire facility to supplement its funding liquidity position. Over 70 percent of this facility has an existing term greater than four years and the remainder has a term of at least 364 days.

"Countrywide has taken decisive steps which we believe will address the challenges arising in this environment and enable the Company to meet its funding needs and continue growing its franchise. Importantly, in addition to the significant liquidity which we have accessed from our bank lines, the Company's primary strategy going forward is to fund its production through Countrywide Bank, FSB. We are already originating in excess of 70 percent of our total origination volume through the Bank, and expect to accelerate our strategy so that nearly all of our volume will be originated in our Bank by the end of September.

"Furthermore, as a result of lessened liquidity for loans which are not eligible for delivery to the GSEs, Countrywide has materially tightened its underwriting standards for such loans, and, we now expect that 90 percent of the loans we originate will be GSE-eligible or will meet our Bank's investment criteria.

"Our objective is to navigate the difficult conditions in today's market as we complete the transition of our Bank business and funding strategy," Sambol concluded. "With these changes, we believe we are well-positioned to leverage opportunities presented by a consolidating industry."

About Countrywide

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at http://www.countrywide.com.

This Press Release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management's beliefs, estimates, projections, and assumptions with respect to, among other things, the Company's future operations, business plans and strategies, as well as industry and market conditions, all of which are subject to change. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: increased cost of debt; reduced access to corporate debt markets; unforeseen cash or capital requirements; a reduction in secondary mortgage market investor demand; increased credit losses due to downward trends in the economy and in the real estate market; increases in the delinquency rates of borrowers; competitive and general economic conditions in each of our business segments such as slower or negative home price appreciation; changes in general business, economic, market and political conditions in the United States and abroad from those expected; reduction in government support of homeownership; the level and volatility of interest rates; changes in interest rate paths; changes in debt ratings; changes in generally accepted accounting principles or in the legal, regulatory and legislative environments in which Countrywide operates; the judgments and assumptions made by management regarding accounting estimates and related matters; the ability of management to effectively implement the Company's strategies; and other risks noted in documents filed by the Company with the Securities and Exchange Commission from time to time. Words like "believe," "expect," "anticipate," "promise," "plan," and other expressions or words of similar meanings, as well as future or conditional verbs such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein.

SOURCE Countrywide Financial Corporation

Investor Contact: 1-818-225-3550, David Bigelow or Lisa Riordan, Media Contact: 1-800-796-8448

http://www.countrywide.com

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arkygirl
Countrywide will become a "Federal Savings Bank" and will be fully protected by the OTS. It will also serve to RELAX some of the regulations currently in place for Countrywide.

Ocwen used to be Ocwen FSB. After a gazillion complaints the OTS and Ocwen signed a supervisory agreement. Within a few months Ocwen began seeking to debank. Up until that time, the OTS served as a complaint board for Ocwen and never took any measures that I am aware of to check into the many complaints they had received. In all fairness, I think that the OTS did the unthinkable and tried to enforce that agreement; Ocwen couldn't take the heat and bailed.

I do believe that the OTS was more than relieved to cut Ocwen and all its complaints loose. Says a lot about "regulation" by this corrupt government, doesn't it?


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mac
Before Ocwen "debanked"  I had complained to every single government agency that I could about them including the OTS...the only thing they EVER did for me was forward a copy of the complaint to Ocwen's stupid ombudsman  in India and he "investigated" my complaints. According to Ocwen, everything was totally my fault and Ocwen did everything they possibly could to help me.   Yeah, I am sure that Ocwen's ombudsman is totally neutral. Like the fox guarding the hen house neutral.  
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NEW YORK (MarketWatch) -- Countrywide Financial Corp.'s financial position deteriorated Thursday after the largest U.S. mortgage lender said that it's had trouble borrowing money in credit markets, and with a leading ratings agency warning that the company's debt could be cut to junk.

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anon2
Countrywide has always had a "bank". I have learned more than I ever wanted to learn about mortgage, banking and countrywide. The mortgage side and the banking side have been two distinct entities under the umbrella of Countrywide. However if I had an account I would certainly get my money out.

Customers withdrawing from Countrywide Bank

Annette Haddad, Los Angeles Times Staff Writer
3:07 PM PDT, August 16, 2007

 
Customers crowded into branches of Countrywide Bank today to withdraw as much as $500,000 at a time because of concerns about the financial problems of the mortgage lender that owns the bank.

At a branch in West Los Angeles, a bank executive served coffee to more than 25 people waiting calmly for their turn with the one clerk who could help them withdraw their money. In Laguna Niguel, the head of a rival mortgage firm that has had its own problems recently cashed in his CDs and wired the money to an account at Bank of America.

Customers, most of whom said they were acting just in case, said they went to the lightly staffed branches because who said they couldn't get through to the bank via its 800-number or its website.

The rush to pull money out came a day after a Wall Street analyst raised the prospect that parent company Countrywide Financial Corp. could file for bankruptcy because of a credit crunch stemming from the sub-prime mortgage meltdown.

Countrywide, which was said to be getting a chilly reception in the market for short-term debt, borrowed $11.5 billion today, entirely draining a bank line of credit, and exacerbating worries about the company's status. Countrywide's battered stock price tumbled an additional 11%.

The company said the unsecured credit line was provided by 40 large banks. It also said it has tightened its lending standards so most new home loans will qualify for purchase by mortgage companies Fannie Mae and Freddie Mac.

Shares of Countrywide fell $2.34 to close at $18.95 on the New York Stock Exchange. They began the year at $42.45.


 

Customers withdrawing from Countrywide Bank

Annette Haddad, Los Angeles Times Staff Writer
3:07 PM PDT, August 16, 2007

 
Customers crowded into branches of Countrywide Bank today to withdraw as much as $500,000 at a time because of concerns about the financial problems of the mortgage lender that owns the bank.

At a branch in West Los Angeles, a bank executive served coffee to more than 25 people waiting calmly for their turn with the one clerk who could help them withdraw their money. In Laguna Niguel, the head of a rival mortgage firm that has had its own problems recently cashed in his CDs and wired the money to an account at Bank of America.

Customers, most of whom said they were acting just in case, said they went to the lightly staffed branches because who said they couldn't get through to the bank via its 800-number or its website.

The rush to pull money out came a day after a Wall Street analyst raised the prospect that parent company Countrywide Financial Corp. could file for bankruptcy because of a credit crunch stemming from the sub-prime mortgage meltdown.

Countrywide, which was said to be getting a chilly reception in the market for short-term debt, borrowed $11.5 billion today, entirely draining a bank line of credit, and exacerbating worries about the company's status. Countrywide's battered stock price tumbled an additional 11%.

The company said the unsecured credit line was provided by 40 large banks. It also said it has tightened its lending standards so most new home loans will qualify for purchase by mortgage companies Fannie Mae and Freddie Mac.

Shares of Countrywide fell $2.34 to close at $18.95 on the New York Stock Exchange. They began the year at $42.45.


 

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srsd

 It would be nice if the money that was loaned to them was done under the same circumstances as with everyone on this message board and let them see how they feel when they get screwed by the system.

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anon2
Like having mortgages secured by Fannie Mae et al is going to stop them from messing with people. I had a FHA loan. Whoop de do. The people who cared the less about this were the FHA. When I called them it was like "what do want us to do about this. Call someone who cares".

$11.5 billion. Who did they blow to get that kind of money.
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Had the FED not intervened with billions more today, this loan to  Countrywide may not have happened!  It would appear that Country will have to mover another several thousand loans to Litton to foreclose on to pay back the loan within the 90 days!  Brace yourself, the time bomb is now ticking!

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srsd

Why does the FED just help the big companies instead of the people?  It looks like if they helped the people that are in this mess and form a committee to oversee the loan industry that things would be some better. I still thinks the crooks should be delt with in a very harish way.

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4 justice now
It appears that the Media, the MS fraudsters and their Brokers and Attorneys, etc. are now working overtime to assure that the MS victims get burnt for a second time, if not more. It really makes me angry (To say the least) when I listen to a news broadcast on my radio, and I hear some uninformed jackass from National Public Radio (NPR) talk about how Countrywide's current financial problems, and the whole sub-prime melt down for that matter happens to be the fault of homeowners who deceived the poor lenders by providing false income information on their mortgage loan applications. What a bunch of bullshit propaganda. Do they really believe the American public is truly that obtuse? This guy went on for over ten minutes about how the current credit crunch (associated with mortgage fraud) is the fault of the mortgage loan recipients, and didn't even mention a damn word about the so-called servicers, not one single time did he mention any of them. In fact, he didn't even put a bit of the blame on any of the lenders/banks/brokers/attorneys who we all know without a doubt are the real culprits here. Nope, he stated it was all due to the individuals with less than perfect credit who defrauded them. NPR will never ever get a dime from me again.

MY Opinion.

4J
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srsd
4 Justice, 
     I totally agree.  I wish the people that say it is our fault was in the same situation and see what they have to say then. I have heard them play that blame game so many times.  I don`t see why the media or anyone would want to make it look like everything is peoples fault when ex employees have said things about the fraud that has been committed.
       Well justice...I was going to go to bed but now you have gotten me all hyped up and having indigestion also....shame on you
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LoneRose

Countrywide was my servicer.
They wanted to give me a ride on their "first we take all your money and run" carousel and then move me to their "fast track to foreclosure" chute

They way they did it was by trying the Force Place Insurance scam.
They had no other way.

My loan was a fixed rate loan done by a good broker who they couldn't bribe and a realtor who was looking out for me. I had a loan amount I could afford
and I paid my own taxes and insurance.

Countrywide's first mode of operandi was to set up an impound account and then get a suspense account started and then charge me all kinds of fees ALL THE WHILE not sending me a single monthly statement for almost 2 years, to keep me in the dark.

When I first found these forums and boards on Yahoo etc, I thought I found a way to keep my home. However the more I read what Moose and Nye and Greg posted, I realized that they needed to have bad loans and if they weren't bad they had to make them bad.
So I realized that I had no way out but to sell and quickly if I wanted to come out of this intakt.

The bible says in Proverbs that shrewd is the one that sees the calamity and covers himself.

I am alone, I don't have money for a lawyer, or money for their extortions.
The only thing I could see for myself is to sell my home to survive this, to not have my credit ruined, to be able to rent a decent place.

I know that I have to thank the people on this forum that I was able to at least do that for myself. I had a really pretty home that I had done a lot of work on in the short time I lived there. In the end, it was not worth the stress I was going through.
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4j I'll go try and dig up that NPR story in a minute but if you've got the link handy could you either post it here or send it to me directly? I want to compare it to my interview with Amy Quinton from NHPR. Maybe we can counterbalance it a bit....

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anon2

I didn't hear that interview but I heard one yesterday afternoon of a young lady from Fortune who said basically the same thing. I was so angry I wanted to reach thru the radio and strangle them.

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Young lady from Fortune? That wouldn't have been Bethany McLean by any chance would it?

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anon2
I thought it was Fortune. No. They did interview Bethany McLean and she was actually the most informed of any of the journalists.

The one I am thinking about is a young lady from Forbes. I think. She didn't know what she was talking about.
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anon2

forbes, fortune they are all the same.

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4 justice now
All:
 
I truly apologize, as my post above is not completely accurate, in that the subject of the report was not Countrywide. It was a report named: "As Sub-prime Bites, U.S. Investigators Look for Culprits." which, aired just a couple of minutes before the report on Countrywide. The NPR representative was Robert Siegel and the so-called reporter shoveling all the "news" was: Financial Times reporter Saskia Scholtes.
 
Since, I was listening to this report as I was driving home, I didn't catch the first report in its entirety. Because, I missed the very beginning I made the mistake of assuming both reports were about the same subject. That said, it was Saskia's inept, biased reporting for the most part that made me angry, although the fact that Robert didn't even bother to interject a single fact regarding the true culprits wasn't exactly comforting either.
 
Mike: Here's the link, if you're still interested.
 
http://www.npr.org/templates/story/story.php?storyId=12847198

srsd: I'm sorry about getting you stirred up.  After all, I'm sure we can use all the sleep we can get.
 
My Opinion
 
r,
 
4J
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anon2
I knew it started with an F. Saskia. I was angry too. She was so off base. I heard it too.


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4 justice now
Hello! Anon2:

Do you think she's really that ignorant or has she just been bought? Just curious!

vr,

4J 
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Let me preface this by saying that I really do know better than to offer my opinion on ANYTHING after midnight. But after 2 am that mechanism shuts down as part of my energy conservation management system...

I'll have to go listen to it again, but I may very well be inclined to agree with her - to an extent. She's talking about "stated" loan products specifically I believe. From what I understand about "stated" loans they were basically one step above the honor system or a "spit in the palm" handshake - only they were legally binding because both parties agreed to them in writing and they were recorded at county registries.

What she is talking about is some of the "mortgage fraud" that the FBI is running around prosecuting these days. My biggest question to the various lending institutions that offered and/or underwrote these loans is "What did you expect?" I'm sure a good portion of the property flipping market was financed by "no doc" or "stated" loans and, at least until the bubble kersplat, I'll bet a lot of people made a lot of money with very little out of pocket investment. What - you mean all I have to do is certify that I make $250k a year as a supermarket cashier by signing on the bottom line and promising that I really do make that much? And you'll give me a loan for $725k?! REALLY?!?! OK...Scribble scribble...I promise...Cross my heart...On my pet rock's life...May the fleas of a thousand llamas infest my armpits if I'm lying...Can I have the house keys now?

The lenders and Wall St. did it to themselves in many cases and did it to borrowers in many more cases. Sure, some borrowers wanted too much house - but if the loan products weren't created by the lenders and there for the brokers to offer to begin with borrowers never would have been able to buy too much house using those products. And if the Wall St. monster wasn't always clamoring to be fed they never would have been securitized. Curse you, Lewie Ranieri !!!
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anon2
follow the money.

I don't know about the rest of y'all but no one has ever been forced to lend me money. In my lifetime it usually has worked out the other way that no one wants to lend me money. I know its sad. So what I don't get is how scores of people somehow overstated their income and got into half million dollar homes without someone at least checking their W2.

It was in the mortgage company's best interest to sell loans they knew were going to default because they made more money selling those securities. IMHO.

So Mike you know Bethany McLean? Of anyone I heard I thought she was closer to the mark than anyone, she skated around it but basically said that the sellers knew they were selling bad product. And that anyone was dumb enough to buy these securities got what they deserved. What NPR needs to do is interview anyone of us. We could tell them what is going on.
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4 justice now
Mike:

I guess I should clarify my position this subject just a bit. Although, I too agree with much of what was said, I was mainly angered because of what she/they didn't say. She/they failed to mention the culpability of all the other players in this fraud. Unfortunately, her/their failure to tell the complete story may lead, whether it was intentional or not, many to believe that the whole problem is solely the fault of dishonest borrowers. Which, we all know couldn't be further from the truth.

r,

4J
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FWW
An email from NACA's CEO.

Dear Countrywide  Borrower,

NACA is leading the fight against predatory lenders.  NACA is working with thousands of homeowners who are at risk of losing their homes.  Many of these homeowners, like yourself, have an unaffordable mortgage with Countrywide.  NACA has been successful in getting many of the lenders, as well as Countrywide, to stop the auction/foreclosure.  However, NACA has been unable to get Countrywide to restructure the loans and give its borrowers an affordable mortgage payment by reducing the interest rates and loan amounts. 

NACA is initiating a nationwide campaign to get Countrywide to restructure mortgages to make them affordable for homeowners like yourself.  Thus, NACA is identifying homeowners that have a loan with Countrywide and who are willing to describe their experience with Countrywide.  This will take place in Washington D.C. next Wednesday and Thursday (arriving August  22nd and returning on the 23rd).  Your presentation would be very important to educate the public about Countrywide's predatory lending practices.  NACA will pay for travel and accommodations. 

If you are interested, please reply to this email and call NACA's Memphis office at (901) 348-0115 anytime this Saturday, or call NACA's National office at (888) 297-5568 and ask for Jason Wheeler ext. 207.  This is a unique opportunity to help other victims, expose Countrywide's predatory practices, and tell the country about the devastation it has caused to you and hundred of thousands of others.

Sincerely,

 

Bruce Marks

NACA CEO

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countrywidetobeginlayoffs

 

 Why is it that the lender's problems are always made to seem worse than the borrower's whose homes they steal?

 

 

 

http://biz.yahoo.com/ap/070820/countrywide_mortgages.html?.v=4

AP
Countrywide Said to Begin Layoffs
Monday August 20, 10:09 am ET

Report Says Countrywide Financial Has Begun Undisclosed Number of Layoffs Amid Credit Crunch

LOS ANGELES (AP) -- Countrywide Financial Corp., the nation's largest mortgage lender, has begun laying off staff as part of its effort to ride out the credit crunch that has rocked the home loan industry, according to a report published Monday.

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O -
Credit Crisis Prompts MBA, NAR, NAHB Letter to OFHEO

Big Players Call On OFHEO to Rethink GSE Decision

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Several key players have rung in on the decision by the Office of Federal Housing Enterprise Oversight (OFHEO) to retain limits on the mortgage portfolios owned by Freddie Mac and Fannie Mae.

The two government sponsored enterprises (GSEs) had petitioned OFHEO, its regulator, last week asking to be allowed to raise those portfolio ceilings in order to offer some relief to lenders in the current mortgage credit crunch. Both the head of OFHEO James Lockhart, III and President Bush stated that the GSE's should clean up the remainder of their accounting problems dating back to 1994 before they are allowed to increase the size of their portfolios. The President also said that the free market was better suited to handling the current crisis than were Freddie and Fannie.


This week the Mortgage Bankers Association (MBA), the National Association of Home Builders (NAHB) and the National Association of Realtors® (NAR) sent a letter to OFHEO urging the agency to take action to temporarily increase the caps on the GSE portfolios "'with appropriate controls,' to inject needed liquidity and stability into the mortgage market."

According to a press release issued by the MBA, the joint letter states that "The nation's mortgage markets are facing a liquidity crisis of a force and magnitude not seen in decades. The chill will have far reaching effects throughout the housing market if stability is not restored. A temporary increase in the allowable size of the GSEs' loan portfolios for the purpose of easing this credit crunch would help stem the crisis.

"An increase in the portfolio caps should be appropriately targeted to assure that GSEs use the increased capacity to help lenders meet the most urgent credit needs, including the private label mortgage-backed securities (MBS) market and mortgages for creditworthy families who would otherwise find it difficult or impossible to obtain a mortgage loan. The authority should be consistent with safety and soundness and include appropriate conditions concerning how long this new capacity will be available to the GSEs, the specific size of the increase, the types of assets eligible for purchase, appropriate reporting and monitoring provisions, and a reasonable schedule for returning to the current limits to avoid future disruptions to the mortgage market.

"Quick and reasonable action is urgently needed to provide liquidity and stability to the mortgage markets and to serve the financing needs of America's current and aspiring homeowners."

Also weighing in was Senator Charles Schumer (D, NY), a member of the Senate Banking, Housing, and Urban Affairs Committee. On Tuesday the Senator wrote to James B. Lockhart urging him to temporarily raise the limit on purchases of home loans by the GSE's. Then with the announcement that the nation's largest mortgage lender, Countrywide, had drawn on and perhaps even drained its huge emergency credit facility coupled with bad news on housing starts and permits coming from the Census Bureau and the Department of Housing and Urban Development, Senator Schumer renewed his call that Fannie Mae and Freddie Mac to allowed to ease the liquidity concerns in the mortgage markets.

"We cannot afford a 'wait and see' approach when it comes to a credit crisis that threatens to derail our economy," said Schumer in a press releases on his website. "The Bush administration continues to ignore one tell-tale sign after another that the subprime woes are threatening the broader mortgage markets. Fannie and Freddie are uniquely positioned to inject badly needed liquidity into the economy, but the President won't let them do their job. These companies need their caps lifted now. If the Bush administration won't act, we will."

Schumer said that "Liquidity is virtually nonexistent for loans that do not conform to Fannie and Freddie's portfolio standards (e.g., "jumbo" loans), which is hurting current and aspiring homebuyers' ability to access lending."

If the regulators do not take action to allow Fannie Mae and Freddie Mac to perform their critical role as market stabilizer, Senator Schumer said he would introduce legislation in September to temporarily raise the portfolio caps. "This emergency measure is not only important to restore confidence in the mortgage market for current and aspiring home buyers, but it would also allow Fannie and Freddie to engage in subprime foreclosure relief efforts across the country before the 'October surprise' of subprime resets further shocks the mortgage markets."


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