This report card has a BIG FAT F
A couple of big stories out there in the Financial World have my attention and it's only my opinion but I can't help but give a BIG FAT F on my report card.
Unlike almost everybody from surprisingly on both the left and the right, I don't blame Fannie and Freddie for causing the housing mess. I think it was reckless lending and mortgage securitization by Wall Street because Fannie and Freddie were basically insignificant players during the lending bubble.
But this new report from ProPublica and NPR doesn't exactly make Freddie Mac look very good.
"Freddie Mac, the taxpayer-owned mortgage giant, has placed multi-million dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates above current rates."
And the NY Times has more on the story.
Now regarding the proposed mortgage abuse settlement, it seems that the big banks are a little too anxious to hand over $25 Billion dollars to settle.
Reuters reports that "State and Federal officials are close to a settlement with the largest US banks over mortgage abuses, with states facing an end-of-the-week deadline to decide whether they will sign on, people close to the talks said."
And the Huffington Post reports that "Nevada's attorney general is pushing back with concern and questions" regarding the proposed settlement.