The Fed’s dominance of the MBS market
At its current pace the Fed is taking about half a trillion of MBS securities out of the market. In fact the Fed is now removing more than 100% of the paper that is being issued.
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Fannie Mae
Summers: History will overwhelmingly approve QE
Below is a video interview Larry Summers conducted with Bloomberg Television. We provide the partial transcript without comment, courtesy of Bloomberg Television.
The stealth bank bailout via leveraged FHA loans
When David Stevens left his position in the Obama Administration in 2011 as the head of the Federal Housing Administration to go to head the Mortgage Bankers Association, the chief lobbyist for the industry he once regulated, I posted on…
Fannie Putting Dubious Loans Back to BofA, So BofA Will Stick Them to Freddie Instead
It looks like someone at Fannie woke up and realized that any case of a guarantor voiding a policy was prima facie evidence that BofA had breached a rep and warranty about loan quality. Look at the examples: inflated appraisals and incomes.
The current housing bust is much worse than the Great Depression
Great chart from the recently released Economic Report of the President. We suspect the Great Depression housing bust didn’t have the government props to soften the blow as we do today, which, therefore, on a relative basis, makes the…
More on Banks Making Shed Loads But Fannie And Freddie “Losing Money as a Matter of…
Fannie and Freddie have already been nationalized and the government is already on the hook for hundreds of billions of dollars of losses as a result. Clearly, this makes it a lot easier to use the GSEs as vehicles to pump money into the…
The Fed’s Rate easing and Obama’s Mortgage refi plan are bullish
Investors must still be worried about the fallout from the European meltdown. However, the situation in the US is looking much better than it did last week because of this aggressive policy response.
Time to Demand Transparency and Accountability of Our Public Stewards
When will we begin to reign-in the Fed and hold it accountable? And will we let the Fed bail-out Wall Street without Congressional approval of funding the next time it crashes? We need to answer these questions soon, because it is beginning…
The FHFA Complaints and Control Fraud
The FHFA complaints lose explanatory power and persuasiveness because they ignore compensation and accounting. It pays to understand accounting control fraud.
FHFA Sues 17 Firms to Recover Losses to Fannie Mae and Freddie Mac
The complaints seek damages and civil penalties under the Securities Act of 1933, similar in content to the complaint FHFA filed against UBS Americas, Inc. on July 27, 2011. In addition, each complaint seeks compensatory damages for…