Someone mentioned that China lost US$450b on their investment in Freddie / Fannie.
Well they said they have been earning 6% a year ...
Public documents show that in 2010 and 2011, Freddie Mac set out to make gains for its own investment portfolio, by using complex mortgage securities that brought in more money for Freddie Mac when homeowners in higher interest-rate loans were unable to qualify for a refinancing.
Freddie Mac's trades came at a time when mortgage rates were falling to record lows. Millions of homeowners wish they could refinance, but their lenders tell them they can't qualify for today's low rates because of tight rules.
Freddie Mac is one of the gatekeepers with the power to set those rules, and lately, it has been saying no more often to homeowners.
That raises concerns among some industry insiders who see a conflict: Freddie Mac's own financial health improves when homeowners can't refinance.
Users browsing this forum: No registered users and 8 guests