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May 9, 2012

Troubled mortgage firm Freddie Mac ends hunt for new CEO

Freddie Mac’s pick? Former E*Trade head Donald Layton: Layton, a former JPMorgan Chase exec who led a turnaround at E*Trade Financial at the peak of the financial crisis, would become the company’s third CEO in the last four years. Considered the front-runner for over a month, sources close to Layton say he plans to accept the nomination, and sees doing so as a “public service.” He’s got his work cut out for him, as the government-controlled company, along with sister company Fannie Mae, has pulled in over $170 billion in bailout money since 2008. The announcement of Layton’s hiring is expected as early as Thursday. source

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13:33 // 2 years ago
January 30, 2012
Homeowners might feel good about the optimism Freddie Mac has bestowed in their abilities.

Homeowners might feel good about the optimism Freddie Mac has bestowed in their abilities.

12:19 // 2 years ago
January 23, 2012
afternoonsnoozebutton:

Shit is getting mad confrontational. This is about to degenerate into a straight up bitch fight.

Have we gotten to the point where it’s a two-man race? Rick and Ron are kinda out of the picture tonight. We ended this part of the debate with Mitt saying of Newt this phrase: “You spent 15 years in Washington, on K Street.” And he’s right, it is a problem. Look at the crap we’re dealing with regarding Chris Dodd right now!

afternoonsnoozebutton:

Shit is getting mad confrontational. This is about to degenerate into a straight up bitch fight.

Have we gotten to the point where it’s a two-man race? Rick and Ron are kinda out of the picture tonight. We ended this part of the debate with Mitt saying of Newt this phrase: “You spent 15 years in Washington, on K Street.” And he’s right, it is a problem. Look at the crap we’re dealing with regarding Chris Dodd right now!

21:36 // 2 years ago
December 21, 2011

A sampling of some of the sites NewtGingrich.com redirects to. RickPerry.com had nothing on this amazing game of roulette.

12:59 // 2 years ago
December 18, 2011

So … who’s paying for the payroll tax cut, anyway? Homeowners

  • $17 per month charges on new homeowners’ mortgages source

» Those who refinance will feel the pinch, too: To help pay for the $33 billion cost of the extended-by-two-months payroll tax cut, the federal government will increase the cost for homeowners to get their homes insured by Fannie Mae and Freddie Mac, who currently back nine out of ten home mortgages in the U.S. The fee, currently around 0.3 percentage points, would jump by 0.1 percentage points, which translates to roughly $17 per month for most homeowners. However, this fee would not affect current homeowners unless they refinance starting next year. Is this the best way to handle the extension?

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11:20 // 2 years ago
December 17, 2011
These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk on the company’s books.
Securities and Exchange Commission enforcement division director Robert Khuzami • Discussing the civil fraud charges that the SEC filed against six former top execs at Fannie Mae and Freddie Mac, charges that came about due to alleged misrepresentation of investors’ exposure to the subprime mortgage crisis. Lawyers for the six officials claim that the executives acted in the best interests of investors despite the allegations otherwise.
11:09 // 2 years ago
November 25, 2011

squashed says: I can offer a bit more on the refinace question. First, the caveat: any sort of financial analysis is going to be highly subjective based on an individual's situation. Make your own decisions, etc.. WIth that said, there isn't much of a disadvantage to lowering the interest rate--though people may get hurt if there are fees connected with the refinance that increase the principle balance. Second, the banks have sold the loans to investors. The investors don't get a choice to prevent a refinance.

» SFB says: Ah, thank you. I admit offering people refinancing info is not my strong suit. :) Thanks for the tips! Hope these help, guys! — Ernie @ SFB

20:28 // 2 years ago

aclutteredmind says: I've been wondering about Obama's refinance plan. Is there any downside to a homeowner refinancing from a 6.5-7.5% interest rate to 4.38 or whatever the rate currently is? Why would the mortgage companies go for it, if they're set to lose so much over the course of the 30 years? Is there some way they can take it off their taxes or something? I guess I'm just missing the catch.

» SFB says: Admit that this question is slightly above our pay grade (which is why we’ve been slow to respond … sorry), but fortunately it appears that Daniel Indiviglio of The Atlantic has worked out the pros and cons at length here. His take? "If this works as hoped, then those consumers will have more money in their pockets each month. Borrowers who see their mortgage interest rates drop from 5% or 6% to near 4% will often have a few hundred dollars more per month to spend or save." He also notes that changes between the 2009 plan and this one could help out more homeowners over a longer period. However, one key point Indiviglio mentions which might explain a lot: “This program only applies to loans owned or guaranteed by F&F." As the government technically owns Fannie Mae and Freddie Mac, they have more leverage with them. Anyway, we’ll point you over that-a-way. — Ernie @ SFB

19:45 // 2 years ago
November 16, 2011
There are two ‘L’ words that apply with Newt, lobbyist and liar. Mr. Gingrich was reprimanded for lying. He has a history of doing that and this is nonsense that he was being paid $1.6 million and maybe more to talk about history.
Rep. Barney Frank • Pulling no punches in his condemnation of Newt Gingrich, over Gingrich’s claim that his $1.6 million in income from Freddie Mac was earned not as a lobbyist, but as a historian. Frank and Gingrich are former colleagues in the House, and it doesn’t seem they terribly care for one another — at a previous debate, Gingrich suggested Frank and financial reform law co-sponsor Chris Dodd should be jailed. source (viafollow)
21:00 // 2 years ago
August 8, 2011
In case you guys thought the downgrade-a-palooza was over … oh oh oh! You are mistaken, my friends. Fannie, Freddie, your massive sinkholes will feel the pain too, because S&P apparently wants to ensure we heard them the first time.

In case you guys thought the downgrade-a-palooza was over … oh oh oh! You are mistaken, my friends. Fannie, Freddie, your massive sinkholes will feel the pain too, because S&P apparently wants to ensure we heard them the first time.

10:29 // 3 years ago