Posted on 02/01/2012 11:03:26 AM PST by Oldeconomybuyer
The Federal Housing Finance Agency (FHFA) today invited investors interested in purchasing pools of Fannie Mae, Freddie Mac and FHA foreclosures in the nations hardest-hit metropolitan areas with the requirement they rent them for a period of year to pre-qualify.
The purpose of the pilot phase will be to examine investor interest in various types of assets,including the location, size, and composition of pools of assets; the ways in which investors maximize the participation of experienced local firms and organizations that can provide the types of services and support needed to ensure community stabilization; the types of structures and/or financing that improve returns to the sellers as well as home values in impacted markets; and the process by which investors are qualified to and ultimately participate in the sales transactions.
The announcement by FHFA came just hours before President Obama was scheduled to make a major speech on housing policy.
(Excerpt) Read more at upi.com ...
This is illegal, but what half as* republican congressional committee will call him on it.
TA-DAAAA! Instant Section 8 housing, in bulk! Socialism at its best!
“... maximize the participation of experienced local firms and organizations that can provide the types of services and support needed to ensure community stabilization”
‘Maximize...’ payoffs, bribes and kickbacks to liberals.
I hate our lying media.
The whole things sounds like a racket. Some “qualified” investor will pick up a bunch of properties that are in disrepair. The taxpayers will pay to have these shacks refurbished by taxpayer subsidized crews. All the renters will qualify for rent assistance and the “qualified” investors will get fat.
Sell the damn properties without any hooks to the highest bidder, sure the taxpayer will take a one time hit. But that would be a hell of lot better than a perpetual hit.
Fannie/Freddie are centerpieces of the criminal enterprise called the Democrat Party-—where Dem cronies and collaborators loot the organization, get cushy jobs, multi- million dollar bonuses, and the like.
Fannie Mae’s political machine dispensed campaign contributions, gave jobs to friends and relatives of legislators, hired armies of lobbyists (even paying lobbyists not to lobby against it), paid academics who wrote papers validating the home ownership mania, and spread “charitable” contributions to housing advocates across the congressional map.
Fannie Mae serves as an industrial-sized patronage factory — sharing profits with political allies, spreading taxpayer funds to voting blocs——like ethnic groups-——and doling out jobs to left-wing academics, Washington has-beens and back-scratching buddies.
Obama insider Fannie Mae exec Jim Johnson got sweetheart loans from shady subprime Countrywide. Pols raked in six-figure salaries as F/F engaged in Enron-sstyle accounting, plunged into debt and helped usher in the subprime housing meltdown through cockamamie lending practices.
Bill Clinton appointed Franklin Raines, Daley and Rahm Emanuel just as the quasi-governmental F/M engaged in rampant book-cooking so that F/M insider could help themselves to massive bonuses. The Chi/Tribune exposed how Emanuel’s “profitable stint” was low-show w/ no work involved. Emanuel was not even assigned to committees, according to company proxy statements.
Immediately upon joining the board, Emanuel and other insiders qualified for $380,000 in stock and options plus a $20,000 annual fee, public records indicate.
W/ Wall Street Emanuel there, accounting tricks were used to mislead shareholders about outsize profits F/M reaped from risky investments. The goal was to cook the books to keep fraudulent earnings on the books, to make Freddie Mac look profitable on paper-——AND to fraudulently obtain humongous annual bonuses for political insiders.
Freddie and Fannie, the two big quasi-govt mortgage banks got HUGE federal bailouts, and had huge lobbying budgets that they used for political contributions to keep regulators off their backs.
So which politicians get Fannie and Freddie political contributions? The top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats and number two was then-Senator Barack Obama who had only been in the Senate little over 2 years, but still managed to grab the number two spot ahead of John Kerry, decades in the senate, and Chris Dodd then-chairman of the powerful Senate Banking Committee.
Fannie and Freddie were creations of the Congressional Democrats and the Clinton White House, designed to make mortgages available to more people, and as it turned out, some many many who couldn’t afford them. Fannie and Freddie have also been places for big Washington democrats to go to work in the semi-private sector and pocket millions.
The Clinton Administration’s White House budget director Franklin Raines was appointed by Clinton to run Fannie........ and collected $50 million dollars. Jamie Gurilli Gorelick (now BP’s attorney), a Clinton Justice Apartment Official, worked for Fannie and took home $26 million dollars in mfg bonuses.
Big Democrat Jim Johnson, recently on Obama’s VP search committee hauled in millions from his Fannie Mae CEO job. Now remember, Obama’s ads and stump speeches attacked McCain and Republican policies for the financial turmoil. It is demonstrably not Republican policy and worse, it appears the man attacking McCain, Senator Obama, was at the head of the line when the piggy’s lined up at the Fannie and Freddie trough for campaign bucks....” - FoxNews, Sept. 2008
The Office of Federal Housing Enterprise Oversight’s report reported that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives.
Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets (by cooking the books).
Ex-Fannie CEO Franklin Raines (Clinton appointee) is a parasitic crook of the first order. This thief cooked the FM books precipitating losses of $9BILLION (that we know of) for the single purpose of creating $50 million fraudulent bonuses for himself (and millions for other F/M insiders).
The SEC said Raines broke accounting rules by playing with risky derivatives. The US Government filed suit against Franklin Raines when the depth of the F/M accounting scandal became clear.
READ IT HERE http://housingdoom.com/2006/12/18/fannie-charges/
The Government noted, “The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public.....explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.”
These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the misstated Fannie Mae profits. (Soon going to trial?)
On top of the $50M he looted from the govt (for cooking the books for which he was fired), Raines also walked away with a tax-paid exit package worth $90 million.
These investors will grab the cheap properties, get the government to repair them, get the government to pay the rent for some section 8s to move into them, and then sell them 10 years from now when the market comes back ...
This is the closest thing to "Cant loose money" ...
Homes that once sold for $250k will be on the market a year from now at $85k...and the owners will make a profit.
The downward pressure on the single largest asset class in the world (US Residential Real Estate) will continue unabated.
One must ask, if more than 50% of CURRENT owners find themselves under water by 25+%...even 50%, will they continue to pay THEIR mortgage? At some point it's no longer a matter of honoring your contract. It's a matter of whether you are too stupid to keep your money.
This is very, very bad news for the economy as a whole.
Very good news for those who still have money. 18-24months out will show historically low prices to, hopefully, accompany historically low interest rates.
Only current owners will be hurt...along with banks and taxpayers.
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