Fannie Mae-No Politics (FNMA)

[obiterdictum]

1. The Fraudulent loans you speak of, were loan programs (No income, No asset, 100% financing...called, liar loans) that were invented by Fannie & Freddie.

What source is used that states or indicates that Fannie and Freddie invented loan programs with "No income, No asset, 100% financing"?

2. The lenders did abuse them, by stretching the programs that were supposed to be for the self-employed only, then started making them to clients that had salaried incomes. These purchasers only had good credit scores, but not enough assets or income to qualify by the old standards.

Can you provide examples of Fannie and Freddie loan programs with these features? What old standards?

3. The TBTF banks did break the rules set before them by F&F, and then turned around and packaged 100 loans to be sold to F&F, with 4 out of 10 not being in compliance with the program guidelines...Then, all those banks were fined Billions of dollars, and have been paying back F&F over the last several years...but really, pennies on the dollars for what they got away with. The TBTF banks took advantage of the rules and programs made by F&F...they...

Please provide actual examples of the rules and programs made by Fannie and Freddie that the TBTF banks took advantage of?

4. The TBTF banks would never make those kinds of loans on their own...

The evidence of settlements made indicate that certain banks did make those type of loans on their own and then fraudulently misrepresented what these loans were on paper and then sold these loans to Fannie and Freddie and others securitizers. The evidence is clear and without doubt.

5. They have to protect their shareholders. If anything, if F&F were made to go away, the housing market would tighten alright, because the TBTF banks would make the qualifications so difficult to get a loan, only the rich would be able to afford them. Picture 30/10's with 20% down pmt...minimum...We need F&F for the NON-RICH folks..

Lenders would not be able to fool securitizers and regualtors a second time around, and if the lenders get the chance to also doing the securitizing and insuring of mortgage loans without a government backstop like that proposed by Corker, Warner, and Crapo, the financial onus is on the lenders and it is certain that whatever mortgage loans are given or MBS sold, these will have an extremely low probability of default and delinquency, let alone foreclosure and failure to pay debts in a timely manner.

Source:
FHFA's Update on Private Label Securities Actions
https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFAs-Update-on-Private-Label-Securities-Actions.aspx

FHFA Complaints
https://www.fhfa.gov/SupervisionRegulation/LegalDocuments/Pages/Litigation.aspx