Posted on 12/01/2010 10:21:37 PM PST by Libloather
Fannie, Freddie say mortgage servicers triggered foreclosure crisis
By Zachary A. Goldfarb
Posted at 12:27 PM ET, 12/ 1/2010
Fannie Mae and Freddie Mac defended their role in the foreclosure crisis in prepared testimony to Congress on Wednesday, while at least one federal regulator said the mortgage giants had contributed to the problem.
Speaking to the Senate Banking Committee at a hearing on the national foreclosure debacle, Fannie and Freddie executives emphasized that they are not responsible for managing payments by borrowers on home loans or foreclosing on homeowners when they default.
These tasks, executives say, are the responsibility of mortgage servicers and law firms with which the companies contract.
"I want to underscore that Fannie Mae does not service loans. We rely on the loan servicing divisions of major banks and other financial institutions as the primary front-line operators and points of contact with the borrowers," said Terence Edwards, executive vice president for credit portfolio management at Fannie Mae. "We pay servicers significant fees during the life of a loan to work with borrowers. Servicers are required under our servicing contracts to help borrowers in trouble, not just collect payments."
(Excerpt) Read more at voices.washingtonpost.com ...
This is the first investigation the new congress needs to begin. Audit them and expose all the criminals.
Pray for America
Well that’s obviously dumb. So what we are saying here is that we are at fault for having stupid loan requirements because banks service the contracts and they don’t really have to foreclose on the loans for us, they can’t just let them continue to live in the houses without making payments and thus we lose out on the entire loan instead of just part of it but that’s just fine because the homeowner wins in the end.
Its also the old “its the banks fault!” F&F refuse to take any responsibility and Congress won’t do anything about it.
Including Republicans. They keep dragging out Wallison, Pinto, Calabria and the same old talking heads from AEI and Cato. While not incorrect, they bray like jackasses.
Besides, Dodd-Frank guaranteed the permanence of Fannie and Freddie.
The mortgages are invalid, the transfers are invalid, the notes are invalid, the transfers are invalid, the documentation is void, the obligation needs to be renegotiated and THEN we will be able to start putting things back together again with homeowners and investors restored as much as possible to the position they were in before this huge fraud began.
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