A story released by NPR and ProPublica shares information on Freddie Mac betting billions of dollars on homeowners not being able to refinance their mortgages at a lower rate. By Freddie Mac doing this, it is causing a stir of shock amongst industry insiders and homeowners alike. This is understandable as just in December, Freddie Mac's chief executive, Charles Halderman, said the company is "helping financially strapped families reduce their mortgage costs through refinancing their mortgages."
The investigation by NPR and Problica show a different story with public documents of Freddie Mac bringing in funds for the company by using mortgage securities during a time when homeowners in high interest rate loans were unable to refinance their mortgages. Speculations are that Freddie Mac, holding the power of the qualifying guidelines for refinancing, was keeping the restrictions tight so many homeowners could not gain the permission to refinancing, therefor allowing Freddie Mac to continue their financial gains.
Freddie Mac and the FHA continue to decline commenting; however, Freddie Mac has stated that their employees in charge of investments are "walled off" from those who deal with the guidelines of homeowners.
No comments:
Post a Comment