Freddie Mac Betting Against Struggling Homeowners

[Paslode]

Freddie Mac, a taxpayer-owned mortgage company, is supposed to make homeownership easier. One thing that makes owning a home more affordable is getting a cheaper mortgage.

But Freddie Mac has invested billions of dollars betting that U.S. homeowners won't be able to refinance their mortgages at today's lower rates, according to an investigation by NPR and ProPublica, an independent, nonprofit newsroom.

There is nothing to see here. How could NPR possibly be surprised considering our elected officials conduct themselves and their investments in the same fashion.

Plus, in 2010 and 2011, Freddie didn't just hold a simple pile of loans. Instead, for hundreds of thousands of home loans, it used Wall Street alchemy to chop these loans up into complicated securities — slices of which were sold in financial markets.

That sounds like a good idea, unless of course the MBS they sold were sold multiple times over, the paper trail has some missing pages and no one is quite sure who owns what.....Bank of America anyone


http://www.npr.org/2012/01/30/145995...ing-homeowners