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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Nye Lavalle
Rescue Sought for Fannie and Freddie

By STEPHEN LABATON
WASHINGTON — Alarmed about the sharply eroding confidence in the nation’s two largest mortgage finance companies, the Bush administration will ask Congress to approve a rescue package that would give the government the authority to buy billions of dollars in stock in Fannie Mae and Freddie Mac and also lend to the companies to meet their short-term funding needs, people briefed about the plan said on Sunday.

Separately, the Federal Reserve voted on Sunday to also open a lending facility for Fannie Mae and Freddie Mac, if they need emergency capital. The two companies would be able to post their own securities as collateral.

The plan calls on Congress to give the government the authority over the next two years to buy an unspecified amount of stock in the two companies. Over the same period of time, it would permit the companies to have greater access to the Treasury, by expanding the credit line that each company has from the Treasury. Each company now has a $2.25 billion credit line, set nearly 40 years ago by Congress. At the time, Fannie had only about $15 billion in outstanding debt. It now has total debt of about $800 billion, while Freddie has about $740 billion.

Today the two companies also hold or guarantee mortgages valued at more than $5 trillion.

As part of the plan, the administration will also call on Congress to raise the national debt limit, people briefed on the plan said. And it will ask Congress to give the Federal Reserve a role in setting the rules for how big a capital cushion each company must hold. Giving the Fed a consulting role in the companies’ oversight is seen as yet another way to reassure nervous markets.

Treasury officials declined to comment on the plan but indicated that a statement would be issued later on Sunday. It was described by lawmakers and officials at other agencies that have been briefed on it.

They said that the Bush administration was hoping that Congress would adopt it quickly as part of a measure intended to help the housing markets and overhaul the regulation of Fannie and Freddie. Last Friday, the Senate approved the measure, and the House is hoping to take it up this week.

Announcement of the plan on Sunday evening was intended to send a sharp signal to both stock markets and debt markets that the government was standing behind the beleaguered companies.

Throughout the weekend, senior officials from the Treasury and the Federal Reserve closely monitored preparations by Freddie Mac to raise money help meet its short-term funding needs. Top officials spent Saturday and Sunday being briefed on Wall Street’s appetite for a $3 billion debt offering by Freddie Mac that was set for Monday. Officials said they were watching to see if the steep declines last week of Freddie and Fannie stock would spill into the debt market and undermine the confidence of lenders.

Fannie and Freddie have grown to become central to the nation’s housing markets. They buy mortgages from banks and other lenders, hold some of them, and sell others in the form of mortgage backed securities. Together, they own or guarantee nearly half the nation’s mortgages. In recent months, the stocks of the two companies have plunged as a wave of foreclosures has eroded confidence in the companies.

The credit line provided by the Treasury to the companies has always been seen by the market place as evidence that the two companies would be rescued by the government if they ever encountered severe financial problems. Yet for many years, a steady of stream of leaders from the Federal Reserve and to officials from Republican and Democratic administrations has denied the existence of a so-called “implicit guarantee.” Those who denied the existence of the guarantee included Treasury secretaries Robert Rubin, Lawrence Summers and Henry M. Paulson Jr., and Federal Reserve Chairmen Alan Greenspan and Ben S. Bernanke.

The implicit guarantee was a useful device both for the companies and the federal government. It has enabled the companies to get money in the debt markets at rates far lower than other companies and close to the same as treasury securities. At the same time, the Federal government did not have to record on its budget any significant liabilities for the large subsidy it was, in effecting, providing to the companies. Yet it also raised concerns among critics, who said it was unfair to rival companies and that it promoted a management laxity since executives knew that the companies could always count on a hand from the government if they began to falter.

Now, in the face of market turmoil in recent days, a quiet yet dramatic policy shift has occurred. Government officials no longer deny the existence of a guarantee. Instead, senior officials at both the Fed and the Treasury have been talking in recent days of possibly taking steps to “harden the guarantee.”

Motivating the change was the central role of the two institutions and the depth of ownership in the paper they have issued. Every major bank, and many mutual funds and pension funds and foreign governments, hold significant amounts of securities issued by Fannie and Freddie, which have been viewed over the years as being almost as safe as treasury securities. A default by either one of the companies could be catastrophic for the financial system.

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4 justice now
Wow, how very interesting but predictable!

I remember when I simply couldn't believe the modern people of the UK actually supported a continued monarchy system of entitlements, i.e. the King and Queen of England etc. (The most expensive welfare system in the world). Oh well, I guess we the tax payers of America are doing that very same thing here to support a small number of wealthy families (this country's greedy super slimy rich) no matter what the cost. All I can say is that it must stop, and stop now, or we the working members of this society are not going to survive.
This whole decade of fraud has been a major wake up call. One that we can't afford to ignore any longer, for our sake, the sake of our children and for the sake of their children as well. The revolution must begin now. The battle is at hand and is ours. If we fail to act we can only blame ourselves.

IMHO

4J
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Our founding fathers warned us!  Jefferson, Jackson, etc, President Jackson, was the only one that did something about it. 
 
Now, the slippery slope gets steeper!
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arkygirl
Wasn't it just Friday (two days ago) that Treasury and the Fed were saying "No bailout for Fannie and Freddie"? Of course, knowing that the government always DOES the diametric opposite of what it SAYS, I looked for the bailout to begin soon, but not quite this soon. Neither of these companies should exist in America anyway.

Why do these creeps always cook up their bailout plans on weekends? Do they think we are not paying attention then, like our brains take two days off from functioning just because it is a weekend? The BS (Bear Stearns) bailout was cooked up over a weekend, too.

Who is really being helped here? Homeowners? No, they will still have junky servicers and crappy lenders. Investors and banks are the beneficiaries of this one; the monied class, as always.

Let these fraud factories die, for the love of Mike! I am tired of paying crooks and then bailing out crooks with even more money. Where will this all end? With every taxpaying soul in America in BK court because we will not be able to pay taxes and eat? Will the Fed then take care of us? Doubtful....you can't eat money, there's no nutrition in it. Can't drink oil, either.

Bad times ahead, I fear. I think Americans concept of "value" is preparing to take a radical turn. On the bright side, after they have crashed the currency once and for all, Mozilo, Bush, Cheny and all of "them" will be on equal footing with the rest of us as far as wealth is concerned. Green beans will be worth more than all the valueless paper in the vaults and on balance sheets.

I can grow green beans in great quantities and put them in jars for later use. Maybe I will trade a couple of jars to them for one of their stolen houses. And maybe NOT!
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   I just had a flash of inspiration! For anyone who has the guts and the time
to raise a stink, why not attend a foreclosure auction and place a bid using
some pre 1968 "lawful" money, the kind that says, "Will pay to the bearer
on Demand".
   Since the bank will be making its bid with post 1968 "unlawful" money,
ie fiat currency which is in blatant violation of the banking laws and
Constitution of the US and the several states, only the the pre 1968
money should be acceptable for placing bids. You as bidder should ask
the Clerk of the Circuit Court to verify that the banks bid is in "lawful
pre 1968 money"or else their bid be rejected. The Circuit Clerks are duty
bound to obey the US Constitution and the States Banking laws.
  " Congress shall coin money and regulate the value thereof". "No State
shall make anything but gold and silver coin a tender in payment of debts".
Although the redemption clause was removed from US Notes and Fed Notes
in 1964, silver certificates continued to circulate until 1968 and were
fully redeemable in silver coin. The US resumed minting silver dollars
in 1986 and they are legal tender (they trade at a ratio of about 20 fiat
 Federal Reserve Notes to one lawful silver dollar>
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Thread name change

Based on the posting above, the name of this thread should be changed to "The Weekend Funny Pages"

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Hey Moron
Check the total debt of the U.S and then the Debt of Fannie Mae and Freddie Mac. Then do the match. There is an old saying that if I owe you $50,000 then you own me, but if I owe you $500,000 then I own you. Same applies!
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Weekend Funny pages? Where in the Constitution say that the President can sign into law a plan for the taxpayers to spend a 1/3 of a trillion to bail out a known criminal enterprise after they looted the country of trillions destroyed the value of the dollar and put on the international auction block to the highest bidder.

The looting of our country and transferring our assets and government control to the banks is the highest form of treason possible, the terrorists are the high level government officials and lenders who have worked hand in hand to convert the U.S. to a 3rd world country. Instead just plain blindly trusting what the government says and does try reading the Constitution and you will find the Federal reserve is not supposed to be running the country though a government supported banking and monetary monopoly it's the dead opposite of a representative republic guaranteeing property rights, due process, and the most important foundation of property rights lawful money.


How can we have homes, and businesses and the right to work for fair wages if a private consortium outside the law can just plain declare the entire financial system bankrupt overnight with no warning and no or very little over sight.   The founding fathers spelled out in plain English there is no way to have freedom without free money that means the treasury coining YOUR gold and silver for free the opposite of the FED using your money to loan back to you at interest. A savings based hard money, assets backed economy is the only way to remain free from Feudalism/Communism/Fascism/Socialism and other forms of central government control of resources, money and property rights.


What our government has done by stealing the citizens money and transferring it to the FED, Fannie Mae, and Freddie mac is more dangerous and criminal than if they had shipped our whole nuclear arsenal to Islamic terrorists and sabotaged our military hardware. The reason why is they have chopped the roots of a lawful financial structure and government bypassing years of plotting planning and wars by foreign entities to take control of our government through stealth and abuse of trust.

 

http://www.newsdaily.com/stories/n30427568-fannie-freddie-bush/

 

POLITICS NEWS

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Bush signs housing bill as Fannie Mae grows


By Jeremy PelofskyPosted 2008/07/30 at 4:29 pm EDT

WASHINGTON, July 30, 2008 (Reuters) — U.S. President George W. Bush on Wednesday signed into law a sweeping rescue package aimed at resurrecting the housing market from its worst slump since the Great Depression and stabilizing the two largest mortgage finance companies.

President Bush speaks in the Rose Garden of the White House about the economy and energy reserves after a Cabinet meeting July 30, 2008. From L-R are: Bush, Secretary of Treasury Henry Paulson, Secretary of Energy Samuel Bodman and Attorney General Michael Mukasey. REUTERS/Larry Downing


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The new law launches a $300 billion government initiative to refinance troubled mortgages, and boosts oversight of Fannie Mae and Freddie Mac, which own or guarantee almost half the country's $12 trillion in home mortgage debt.

It expands a line of U.S. Treasury credit for the companies, and gives the government the option to take equity stakes if they ran into trouble.

Lawmakers ironed out the law over the past month to stem a crisis in investor confidence over the two companies, which were created by Congress to keep mortgage money flowing. The companies are trying to strike a balance between expanding earning power and providing finance for the mortgage market against containing losses that have eroded their capital.

"We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac," said White House spokesman Tony Fratto.

Bush signed the legislation into law because it included numerous key housing reforms, including a stronger regulator of the two mortgage giants. The White House had originally opposed a provision that offers $4 billion in grants to states to buy and repair foreclosed homes.

The Bush administration for years advocated a smaller role for the companies, asserting that their management of trillions in assets placed too much risk on the U.S. financial system.

The bill underscores the importance of the companies, long criticized as private companies with an implicit guarantee from the U.S. government. The more explicit taxpayer backing put in place by legislation benefits holders of their $1.6 trillion in combined debt used to fund mortgage purchases.

"The oddity of the situation is if the debt is backed by the government, then it might be impossible to imagine how the companies might ever fail," said Charles Lieberman, chief investment officer at Advisors Capital Management in Paramus, New Jersey.

The companies' mortgage holdings have ballooned this year, and their regulator and the Treasury have pressured them to raise capital needed to fill a huge void left by the crippled Wall Street mortgage funding machine.

They have plowed some capital into buying mortgages from lenders, which helps hold down home loan rates and provides banks with fresh money to continue lending. The capital also helps offset expected losses.

Fannie Mae on Wednesday said its investment portfolio in June increased at the fastest annualized rate in nearly five years, though it slightly slowed planned future purchases. The portfolio, which is the company's top revenue source, increased to $749.6 billion.

Solid demand for $4 billion of bills sold by Fannie Mae and Freddie Mac on Wednesday also suggested growing confidence among investors in the two.

The housing legislation comes amid signs that real estate is continuing a nearly two-year descent that many economists say will hamper U.S. economic growth through 2009.

Prices for U.S. single-family homes plunged 15.8 percent in May from a year earlier, a record pace, according to the Standard & Poor's/Case Shiller Home Price Index released on Tuesday. Applications for new mortgages dropped last week to the slowest rate since 2000, the Mortgage Bankers Association said on Wednesday.

The new law also sets up a $300 billion fund under the Federal Housing Administration to help distressed homeowners get more affordable, government-backed mortgages and get out from under risky mortgages they cannot afford.

The bill also offers tax breaks to spur home-buying; sets up the first national licensing system for mortgage brokers and loan officers; and raises the limit on the size of mortgages that the Fannie Mae and Freddie Mac can guarantee.

Shares of Fannie Mae and Freddie Mac initially rose after Bush signed the legislation early on Wednesday, and as U.S. securities regulators extended an emergency rule aimed at curbing bets against the stocks of 19 major financial firms, including Fannie Mae and Freddie Mac, known as short selling.

Stock and bond investors were also heartened by a ruling by the Financial Accounting Standards Board to delay a change that could have put $4 trillion of mortgage bond guarantees onto the balance sheets of Fannie Mae and Freddie Mac, making them fall severely short of capital.

Fannie Mae shares rose 5.3 percent to $12.21 and Freddie Mac's stock increased 3.3 percent to $8.70, according to preliminary closing figures.

Speculation that losses at the companies would grow and leave them short of capital caused a frenzy of selling in their shares earlier this month, pushing them down 50 percent. The hastily arranged plan by the Treasury on July 13 for backstop funding for Fannie Mae and Freddie Mac -- which was woven into the housing bill -- helped break the fall, but shareholders remain wary about dilution of their stakes as the companies raise more capital.

(Writing by Al Yoon in New York; Editing by Jonathan Oatis)

 

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BISHOP
THE FEDERAL GOVERNMENT TOOK OVER THE FEDERAL GOVERNMENT WHEN FDR AND THE CONGRESS ENACTED THE FEDERAL RESERVE ACT. THE REPEAL OF THIS MONSTROSITY IS THE ONLY SOLUTION.

LADIES AND GENTLEMEN,

DON'T YOU WONDER WHY WHEN WE SEND OUR DOLLARS OVERSEAS TO BUY CHINESE MANUFACTURED PRODUCTS THAT THE ONLY WAY WE ARE TO GET OUR DOLLARS BACK IS VIA THE FEDERAL RESERVE'S PUPPETS...FANNIE MAE AND FREDDIE MAC....

HOW DO THEY ACCOMPLISH THIS???........BY FRAUDULENTLY ENTERING INTO A SCHEME TO SELL A SINGLE MORTGAGE NOTE TO CENTRAL BANKS AND UNSUSPECTING INVESTORS THAT ARE AWASH IN PETROL DOLLARS OR DOLLARS FROM OUR PURCHASE OF EXPORTS FROM THEIR COUNTRIES. THEY SELL THIS TO US AS BEING GLOBALIZATION THAT IS GOOD FOR ALL OF THE U.S.A.....BUT, THIS IS MERELY TO PLAY A THREE CARD MONTY GAME

BY SELLING THE NOTE VIA "TRANCHES" (A WORD CONNOTING A BOND) WHICH THESE ARE NO MORE THAN PRETTIFIED WORTHLESS PENNY STOCKS (A MORTGAGE BACKED SECURITY...A CONSUMER DEBT OBLIGATION) THEY RETRIEVE OUR DOLLARS FROM THEIR FOREIGN BANKS....THE PROCESS OF DOING THIS IS THE SALE OF MORTGAGE NOTES SEVERAL TIMES OVER.

TO ACHIEVE THIS THE INVESTMENT BANKER..SUCH AS ...THE GOLDMAN SACHS ET AL ...PACKAGE A PORTFOLIO OF HOME MORTGAGES, THAT ARE SOLD AS "TRANCHES". THE INCOME THAT THE NOTE YIELD ENTITLES THE HOLDER (THE OWNER OF THE NOTE) TO OBTAIN IS GENERATED BY THE DEBTOR ON THE NOTE. THE DEBTOR ON THE NOTE IS THE INDIVIDUAL HOME OWNER. WHO WOULD BELIEVE THAT SOMEONE FLIPPING BURGERS TO EARN ENOUGH TO PAY HIS HOME MORTGAGE PAYMENT CAN GENERATE ENOUGH CASH TO PAY THE YIELD ON THE NOTE TO SEVERAL DIFFERENT BUYERS OF PORTFOLIOS OF TRANCHES THAT CONSIST OF A NOTE ON A SINGLE HOME THAT HAS BEEN SOLD TO PERHAPS AS MANY AS 3 TO 5 DIFFERENT INVESTORS.

THE CASH NECESSARY TO SUSTAIN THIS FRAUD ENLISTED THE ACTIONS OF FRAUDULENT MORTGAGE SERVICERS SUCH AS HOMESIDE LENDING, AMERICA'S SERVICE COMPANY, FAIRBANKS AND OTHERS BY THE CREATION OF A FALSE DEFAULT CONDITION AND IN EXCHANGE FOR "ALLOWING" THE OWNER TO REMAIN IN THE HOUSE AND AVOID FORECLOSURE THEY "MODIFY" THE LOAN AND INCREASE THE INTEREST RATE ON THE NOTE ....BECAUSE THE HOMEOWNER IS NOW A "SUB-PRIME" BECAUSE HE IS IN A DEFAULT STATUS ON THE LOAN.

AS I HAVE SAID BEFORE, THE FEDERAL RESERVE WAS GIVEN REGULATORY AUTHORITY BY ACTS OF CONGRESS IN 1994 OVER FANNIE MAE AND FREDDIE MAC. THE REGULATORY AUTHORITY WAS NOT EXERCISED...IT WAS IGNORED WHILE THE GSE's INSTITUTES THEIR WEB OF DECEIT BY INCORPORATING MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. SO AS TO ALLOW ANYONE AND EVERYONE THAT WANTED TO FORECLOSE ON A HOME TO INSTITUTE FORECLOSURE PROCEEDINGS. THE COURTS WERE COMPLICIT IN ALLOWING THE CHARADE TO HAPPEN BY AND THROUGH THE COURT'S WAIVING OF THE RULES OF EVIDENCE AND THE REQUIREMENTS OF THE UNIFORM COMMERCIAL CODE OF PROOF OF OWNERSHIP OF THE NOTE.

TO OBTAIN THE DOLLARS THAT WE HAVE SENT OVERSEAS FOR OUR CARS AND OTHER CONSUMER GOODS, WE DO NOT NEED THE FEDERAL RESERVE AND THEIR OPERATIVES FANNIE MAE AND FREDDIE MAC. WE CAN OBTAIN MORTGAGE FINANCING AND MORTGAGE LIQUIDITY FOR THE PURCHASE OF OUR HOMES FROM THE BANKS AND FOREIGN INSTITUTIONS THAT ARE AWASH IN DOLLARS. WE DO NOT NEED TO OBTAIN OUR MORTGAGE FUNDING FROM THE FEDERAL RESERVE AND THEIR PUPPETS FANNIE MAE AND FREDDIE MAC.

THE DOLLARS ARE THERE...IF WE ELIMINATE THE MIDDLE MAN (THE FED) AND ESTABLISH A STRONG GOVERNMENT CREATED CLEARING HOUSE THAT SERVICES MORTGAGE SO THAT THE FRAUD PERPETRATED BY THE HOMESIDE LENDINGS AND AMERICAS SERVICING COMPANIES AND THE LITTON LOANS OF THE WORLD MAY NOT EVER BE FOISTED ON THE HARD WORKING AMERICANS OF THIS GREAT COUNTRY.

YOU SEE...GLOBALIZATION IS ONLY FOR THE REST OF US...OUR JOBS ARE TRANSFERRED TO FOREIGN COUNTRIES UNDER THE AUSPICES OF THE NOBLE CAUSE OF GLOBALIZATIONT THAT IS "GOOD FOR US AND THE WORLD."

BUT,....WHEN IT COMES TO CONTROLLING WHO IS TO BE APPROVED FOR MORTGAGE MONEY SO WE MAY HAVE SHELTER...THE FED SAYS THEY AND THEIR OPERATIVES, FNMA AND FREDDIE MAC ARE THE ONLY ANSWER...HOGWASH..

WE AS A PEOPLE ARE THE HARDEST WORKING PEOPLE IN THE WORLD AND WE DESERVE AN EVEN PLAYING FIELD ON THE GLOBALIZATION PLAYING FIELD...LETS GET OUR MONEY DIRECT FROM THE FOREIGNERS WHO NOW HAVE OUR MONEY AS THE RESULT OF OUR PURCHASE OF THEIR OIL AND OTHER GOODS.


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