Failed Fannie Mae Will Pummel Mortgage Defaulters

Monday, June 28, 2010
Posted in category Financial Markets

The government, after destroying the economy and housing market through its social engineering, financial corruption, and political favoritism, is telling you to pay up or else.

Government-sponsored mortgage purchaser Fannie Mae is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for seven years.

Troubled borrowers who do not try in good faith to work out a deal, but have the capacity to pay, are targeted by the policy announced Wednesday.

…Fannie Mae said that in locations where the law allows, it also plans to take legal action to recoup outstanding mortgage debt from borrowers who strategically default. The company plans to instruct its servicers to monitor delinquent loans facing foreclosure and recommend cases to pursue for such judgments.

Fannie, a huge part of the problem, has been capsizing boats and is ordering folks to not jump out of the water. The government will surely step up its campaign to keep in place its social engineering strategy which is anchored in its “American Dream” scam.

Remember that in 2009 Obama threw away the $400 billion bailout cap for Fannie and Freddie and pledged whatever (unlimited) finances were needed to keep the two sinking ships afloat. Meanwhile, both companies are delisting from the NYSE and will trade over the counter because they could not meet the minimum trading requirements.

I’ll close with some unkind words form a Wall Street Journal piece last week on Fannie and Freddie:

First things first. Fannie and Freddie aren’t real companies. The total equity in the two companies is a negative $146.9 billion, according to Bose George, an equity analyst covering the mortgage and housing sectors for Keefe, Bruyette & Woods. In short, these are government-owned zombie entities that would have been shut down by regulators long ago, if the regulators didn’t own them.

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6 Responses to Failed Fannie Mae Will Pummel Mortgage Defaulters

  1. Iluvatar says:

    June 29th, 2010 at 1:23 am

    Oh god – you hit a nerve.

    I will issue out something tomorrow (or mebbe never) that is a bit more terse than the furstration that I have w/ these 2 guys.

    These guys need to be ended immediately!

  2. Iluvatar says:

    June 29th, 2010 at 2:17 am

    And oh btw – they are already delisted.

    That they shouldn’t be closed and go through formal bankruptcy proceedings is an absolute mockery of enormous proportions!

    I hate this phrase; it makes me nauseous:

    We just a keepin’ on kickin’ that can down the road

    Until we can’t, and then it overwhelms us.

    Better now than later, dude…

    End them now – they were unConstitutional to begin with (all THEY can plead is that G-D’d Commerce Clause!!)

    Rinse this d*mn system – please!

    No more will follow – promise (too darn ticked)!

  3. Karen De Coster says:

    June 29th, 2010 at 7:31 am

    Iluvatar – they were not delisted when the stories were written.

  4. liberranter says:

    June 29th, 2010 at 10:30 am

    If there’s a silver lining to this nonsense, it is that this illustrates the growing desperation of the state-corporate plutocracy ruling over us, and this is just one more example of its death throes.

    Prediction: the number of mortgage defaults in the very near future will become so massive that FRAUDIEMAE will quickly realize that it doesn’t even come close to having the resources to deal with them all.

  5. Iluvatar says:

    June 30th, 2010 at 12:36 pm

    I just saw this and thought I would pass it on (what to do about Fannie/Freddie), FYI:

    http://globaleconomicanalysis.blogspot.com/2010/06/price-we-pay-for-budgetary-murder.html

    Enjoy! Mish is a lot of fun to read – I love this guy!

  6. Michael says:

    July 4th, 2010 at 9:59 am

    I like the use of “good cop, bad cop”. At first they were “helping” existing homeowners retain ownership (read: stay in debt slavery status), and now they are demonizing those who strategically default. Pretty interesting.

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