Posted on 08/31/2009 8:14:59 AM PDT by FromLori
Chris Dodd may have put pressure on the Fed to aid a troubled mortgage servicer.
Forbes is reporting that the Senator from Connecticut helped Carrington Mortgage by sending a letter to the Federal Reserve urging easier terms for mortgage servicers taking part in the TALF program.
And when the Fed changed the TALF program, it turned out that Carrington was the only company to benefit. Carrington is owned by a hedge fund based in Greenwich, Connecticut.
In the letter he argued that the terms of the TALF advances were not “economically viable” for mortgage servicers. The TALF, for those of you gagging on the alphabet soup of financial rescue programs, is the Fed's program to subsidize the purchase of asset backed securities. Its goal is to encourage more securitization of auto-debt, home loans, student loans.
From the letter: "Independent servicers argue that the terms of the TALF [Term Asset-Backed Securities Loan Facility] advances are not economically viable. As a result, a number of independent servicers may not be able to continue modifying loans."
From Forbes:
“The officials were surprised by the senator's Aug. 7 letter because it followed an eight-month lobbying campaign by a handful of mortgage servicers and benefited one firm more than any other: Carrington Mortgage.”
In March, the Fed expanded the TALF lending program to include bonds backed by money owed to servicers. With this change, servicers can issue new debt using the money they will collect down the road once they get reimbursed. This helps servicers cheaply refinance their existing bank credit lines.
But of America's independent servicers seeking help through TALF, only Carrington was failing to gain traction.
Forbes says that the letter comes on the heels of Carrington’s CEO Bruce Rose trip to DC to plead his case.
(Excerpt) Read more at businessinsider.com ...
You know why he can do that legally, because the FED is NOT a government entity. It is a private bank. The FED can do ANYTHING it wants to, including printing up Trillions of dollars, inflate our dollar supply, and create insane inflation. Which it is doing right now.
Its time to burn the Fed to the ground figuratively speaking. Its time to abolish the Fed, and repeal the Act that allowed it to usurp the banking industry from the people.
Agree END THE FED!
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