Skip to comments.Issa probing Fannie's big mortgage buy - "backdoor bailout"
Posted on 09/15/2011 6:57:18 PM PDT by opentalk
House Oversight Committee Chairman Darrell Issa (R-Calif.) is wondering why Fannie Mae agreed to buy 400,000 mortgages from Bank of America and whether its purchase of the risky assets constitutes a "backdoor bailout" of the bank.
Issa sent a letter Thursday to Edward DeMarco, the acting director of the Federal Housing Finance Agency (FHFA) that regulates Fannie, asking for a justification of the deal, especially in light of the bank's recently announced spate of layoffs. "The transaction appears to have shifted a significant amount of risk from BofA's portfolio to Fannie.
(Excerpt) Read more at thehill.com ...
Taxpayers effed again by browneye fwank
Y’know....it will take YEARS to uncover the slime of this administration......which is purposely planned. It’s like a herd of cats following the next shiny object. He’s thrown sooooooo much crap out there, where do you begin???
The list, ping
Let me know if you would like to be on or off the ping list
Wait... isn’t Fannie suing Bank America because the mortgage backed securities they bought were full of crappy mortgages?
Issa gets it - God bless him. It means that Team Obama/Soros will redouble their efforts to destroy him.
We live in dangerous times.
Where’d Fannie get the money? Last I heard Fannie had taken too many in the Fannie, and was broke.
Fannie bought BofA loans. And is suing BofA over them.
Issa is wrong about this one. Sorry.
much of it taken by obama adviser james johnson who cooked the books when he was CEO...go Issa go!!!
The bank was one of over a dozen the FHFA sued earlier this month as it sought to recoup losses on risky mortgages sold to Fannie and Freddie before the financial crisis
The industry wide practice of selling mortgages rebundled into mortgage backed securities, collateral debt obligations involved the destruction of notes, titles, etc which led to the fraudulent creation of documents, the fraudulent use of notaries and “robosigning”.
Today, one should get forensic title, note search (a few hundred dollars) on any home for purchase or sale for establishment of the legal legitimacy of any paper trail....absent a legally correct paper trail, all property must be considered “non-property”, separated from our property system completely, and therefore exhibiting “no standing” for legal purposes.
The 400,000 mortgages in BofA probably ALL have an absent paper trail, and therefore are “non-property”...if sold or transferred, a real transfer of title and note cancellations would not be possible. The properties cannot legally be marked to market and thus expose the real value of millions of mortgages sold many times over in credit derivative instruments.
The transfer of these properties at “full value” for what is really “non-property” with NO LEGAL value is essentially ...fraud.
Did Fannie do a forensic title and note search on any of these properties?
The article read as if the loan purchase was a new event, aside from the past purchase of the mortgage securities mentioned in the suit, which is why I commented. I'll re-read it.
FOLLOW THE MONEY, PEOPLE
Fannie buys BILLIONS in toxic mortgages from BofA, now YOU are on the hook for them.
Buffet buys $5 Billion in BofA stock almost the next day.
Only A couple of days later Both HCA and GE anounce deals to buy back Buffetowned stock in the amount of.... wait for it................. FIVE BILLION DOLLARS.
Fascism can be wonderfully profitable if you are closely connected to the Dictator.
Biz media notes the conflicts, but mainsteam media IGNORES IT (except for FOX, of course. But they’re evil, doncha know)
I re-read the article. It looks like, despite the suit for the older mortgage backed securities purchased several years ago, Fannie went ahead and bought $73 billion more in August. I’d say Issa is right to ask about it, since taxpayers are on the hook for all of Fannie’s mistakes.
BofA sold loans to Fannie Mae several years ago. CWide sold loans to Fannie Mae too (I can’t tell from the story if the CWide loans were lumped in with the BofA loans).
Story goes, Angelo threatened Mudd at Fannie that he would walk if Fannie didn’t buy CWide’s ALT-A loans. Fannie bought them.
Then Fannie bought BofA loans AFTER the market had dropped off a cliff. Why? Is this the backdoor bailout? But why would Fannie then sue BofA? Was Fannie that stupid? No. Or was it FHFA that filed the suit?
What a mess.
Another form of Solandra?
I guess Congress is slowly figuring it out that the bankers control Wash DC via Fed Reserve, and US Treasury (both filled with ready to retire gov workers seeking lucrative careers in Wall Street after gov retirement or infiltrated by agents to serve banker interests). Housing market is tanking, thus BoA portfolio is filling up with more liabilities and at the same time BoA is facing state and civil lawsuits. If I were BoA I would use my influence in Fed Reserve and US gov to unload the bad mortgages onto the taxpayers or face meltdown that can bring down other banks. Will anyone in the gov confess, good luck Cong Issa. No one is talking. Maybe the next POTUS should not close Gitmo. Some bank employees and Treasury officials need to be sent there for interrogation.
To be fair, BoA was forced into taking over Countrywide by Obama thugs, so the govt. owes BoA for that.
Probably Fannie is big enough that the left hand (purchasing, influenced by politicized management) doesn't know what the right hand (legal, also politicized) is doing.
Issa probing Fannie via the back door? Barney Fwank will be jealous.