A Pattern of Deception

“These and similar emails and memos show that Treasury and FHFA have not been truthful about their motives for agreeing to the net worth sweep. ”

Millions of families have faced foreclosure while merely responding to a government television ad promoting a fake HAMP scam. Homeowners were told to miss 3-4 payments in order to qualify “to apply” for HAMP. No one was informed that missing payments would put them in default and ruin their credit that in many cases had been nearly perfect.

Thrust into foreclosure costing thousands of dollars to hire an attorney and fight a judicial preconceived notion of a “deadbeat” (a term, along with liars loans actually referring to pretender lenders pushed on the media by the banks and the government), homeowners entered into a rabbit hole that in many cases has continued for nearly a decade.

Nearly 10 years after the GSE conservatorship and foreclosures abound, we learn that Fannie has been an intentionally concealed investor / real party in interest, damaging homeowners who should have been given modifications rather than thrown into a foreclosure mill. On top of this drama, it becomes common knowledge that in 2012 former President Obama instituted quarterly Net Sweeps of GSE profits made up of primarily foreclosure blood money to fund the Treasury and prop up Obamacare.

As a result of the conservatorship under the HERA Act, homeowners can’t directly sue the GSEs for their role in the fraudulent concealment as real party in interest in the foreclosure process. Due process issues abound in millions of wrongful foreclosures since 2008.

HOWARD ON MORTGAGE FINANCE

On July 19, Judge Margaret Sweeney unsealed 33 additional documents produced in discovery for the lawsuit brought by the Fairholme Funds in the U.S. Federal Court of Claims. They were made available to the public early last week.

Not surprisingly, the documents that attracted the most attention were those that contradicted the “death spiral” explanation given to the public and in the court cases by Treasury and FHFA as the reason for the net worth sweep. Excerpts from the new documents reinforced what had been apparent from evidence unsealed earlier: that Treasury and FHFA were fully aware that Fannie and Freddie were about to experience a surge in profitability well before the sweep was announced; that the sweep was imposed precisely to prevent the companies from retaining those earnings as capital, and that stripping the companies of their capital was viewed by Treasury as essential to achieving its goal of…

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One thought on “A Pattern of Deception

  1. Haven’t read the entire article yet, but do wonder just what it is they’re planning on replacing them with. I’m guessing MERS will be involved.

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