How To Find Out If You Have A Fannie Mae Or Freddie Mac Loan
This is Ron Paul with your weekly update forAugust 23rd. Recently there have been some encouragingsigns that Congress is finally willing to admit what should have been evident two yearsago. Even after a $150 billion bailout, Fannie Mae and Freddie Mac are still bankrupt andshould be abolished. Indeed Rep. Barney Frank, a longtime champion of Fannie and Freddiehas made a few statements alluding to this and I have signed on to a letter asking himto clarify his remarks and hold hearings on this topic. There seems to be a growing consensusin favor of abolishing Fannie and Freddie. This is the good news.
The bad news is that instead of simply returningto the free market, Fannie and Freddie will probably be replaced with something equallydamaging, and at this point we can only guess what that will be. One possibility is thatinstead of these two giant Government Sponsored Enterprises (GSEs) the government will deputizethousands of smaller banks to do the same thing â€“ that is to securitize mortgageswith taxpayer guarantees to encourage lending that otherwise would not happen. In otherwords, there will be a myriad of smaller Fannies and Freddies, and government involvement willreach even deeper into the financial sector. Fannie and Freddie, and thus the taxpayer,has an alarming $5 trillion exposure to the
mortgage market. To some, spreading out thisrisk might seem tempting, and a smart thing to do. But the fact remains that if a bankexpects to lose money on a loan, so will the taxpayers. Playing around with structuresand definitions will still not deal with the root problem â€“ government meddling in thehousing market, playing fast and loose with our tax dollars, and central planning by theFederal Reserve. Banks have complex risk assessment strategiesin place that help them forecast if a particular loan will make them any money or not. If theyexpect to make money, they will approve the loan. If they have doubts, sometimes theywill ask for a cosigner to improve their
odds. You might do this willingly for a friendor a relative if you didn’t mind losing some money on their behalf, but current governmentpolicies essentially force taxpayers to become cosigners for risky borrowers that are completestrangers, who the banks have already determined to be bad risks. Taxpayers have no choicein the matter because politicians decided a few decades ago that dangling homeownershipin front of more people seemed like a good way to garner votes. That was sold to voters as a compassionategesture to the poor and beneficial to society as a whole. After all, how could giving moreAmericans an ownership stake in society be
bad? The combined policies of loose creditand government backing increased the demand for housing and drove prices sky high. Whenthe housing market heated up to the breaking point everything came crashing down. Thosesuddenly facing foreclosure saw the reality of government compassion. Truly, when governmentoffers you a gift, you should eye it with great suspicion. Another tragedy is that many job seekers arenow tethered to their locations because of upside down loan obligations. It takes a lotof effort with their bank and damage to their credit scores to figure out how to get outand move to a place where there are jobs.
Will the government now be seeking ways tosubsidize renters in some way because of this lack of mobility? Some think so. My hope is that for the long term stabilityand health of the economy, the government will extricate itself from the market altogetherand let it normalize. My fear is that in its usual misguided efforts at solving one crisis,it will create a thousand others. Thanks for calling this update. A new updateis placed on this number, 8883221414 every Monday morning. The written text can be foundon my website house.govpaul under the heading quot;Texas Straight Talkquot;. Thanks forcalling.
Fannie Mae Homepath Buyer BEWARE
Buyer Beware Homepath by Fannie MaeIt truly saddens my heart to have to make this tutorial. However, I feel it is my dutyas a citizen of the United States of America to give worldwide notice of the unethicalpractices of the entities known as Fannie Mae and their affiliated partners. FannieMae is not a true government entity, but they are financially backed by our U.S. tax dollars.I will endeavor to make this testimony brief. In a nutshell, I made an offer on a home on7.16.14. Recieved a counter offer at 9 pm on Friday 7.25.14 that the seller Fannie Maewished to close the deal on Wednesday 7.30.14 prior to 6 pm. The rapid closing date inferredthat they possessed clear title to be able
to close the deal this quickly.On the day of closing, I made sure that those involved understood that I required cleartitle with title insurance, and keys to the home as my purchase and earnest money waswired to their closing attorney’s trust account as of 7.28.14.At this time, I was informed that they had not begun the title search. Seems if I hadnot required clear title they would have sold me this home, of which I later learned, thatthey did not legally own. The Listing broker approached me for an extensionto close on or before 8.8.14 at 6 pm ET to apparently cover their tracks. Each call tothe closing attorney, that was not disconnected
during their recording, resulted in them givingme some excuse as to why they were not successfully progressing on the title search.Not suprisingly, I learned that this particular property sale had already been rejected by2 prior lenders of 2 previous attempted sales by the seller Fannie Mae.On the last day of the extension, Fannie Mae had their listing broker send me a Noticeof Contract Termination. The actual contract expired this evening at 6 pm and requiredthem to send all of my funds back to me. The Seller Fannie Mae had defaulted due totheir inability to secure a vested title. This means that the title is dirty and thatthey do not have legal ownership. Dirty title
also means any prior liens on the propertyare transferable to any new holder or owner of the property title.So, on their Notice of Contract Termination which acknowledged their default, I requiredthem to reimburse the 70 dollars in wiring fees that I incurred. According to the listingbroker, Fannie Mae the seller rejected my entry on the contract. I was not sent anyproof of the listing broker’s claim. Now he is again requiring me to sign anotherNCT contract that has empty lined areas. I am told by this listing broker that my moneywill continued to be held hostage until I sign their contract. I advise everyone tonever sign a contract, that can be filled
in, after your signature is applied on thecontract. As of 8.13.14 I am still working on the return of my funds held in trust withFannie Mae’s closing attorney. On another note worth mentioning, 16 hoursPRIOR to the contract expiration, the listing broker changed the online listing from quot;undercontractquot; to quot;coming soonquot;. I ask you my viewer: Does this sound ethical to you? Does anythingthat I have experienced sound like fraud is involved? You be the judge.I am also out nearly an additional one thousand dollars in unrecoverable losses incurred withthis failed transaction. Thousands of other
individuals have made online posts as to thecorrupt, unethical, fraudulent, and illegal business practices of Fannie Mae and theiraffiliated partners. Again I say, buyer beware! If you are braveenough to attempt to buy one of these homes, please do your homework. Read the online postsof others who have been harmed by these entities, as well as the many online news articles.Secure your own private closing attorney that has no affiliations with Fannie Mae.You may wish to stay away from Fannie Mae financing as many online posts will adviseyou of this in order to avoid their rapid and inhumane foreclosure procedures, or evenupside down mortgages due to their non requirement