Fannie Mae (FNMA)

[trunkmonk]

this could be an eye opener in a jury case. FHFA is once again forcing the GSEs to support HUD by taking profits from them and giving to HUD programs which include ACORN. While they are in conservatorship FHFA is now pushing HUD loans again, easy to do when you have control and take all the money, no wonder they dont want to give them up.

"They’re right to be worried. In a filing last fall, counsel for Nomura said that Fan and Fred not only went shopping for pools of mortgages. Nomura offered evidence that the politicized twins sought to ensure that the particular mortgages in the pools would help them meet affordable housing goals set by the federal Department of Housing and Urban Development.

In other words, while many investors might try to avoid risky loans to people with low credit scores, Fan and Fred were doing the opposite. They sought risky loans to please their political partners, even as they enriched themselves with fat interest-rate yields.

According to the Nomura filing, “To enable Freddie Mac and Fannie Mae to meet HUD’s requirements, broker-dealers provided them with loan-level information about the pools of loans from which private label securitizations were to be created. As Fannie Mae’s Paul Norris explained, ‘the whole collateral pool was ours to carve out.’"