Are Freddie and Fannie Insolvent?

RE:Are Freddie and Fannie Insolvent?

Elfie — Thu, 10 Jul 2008 11:00:00 GMT

I don't want to be pesimistic, but the financial disaster is bigger than all of us can imagine and it will continue to get worse in every sector of the economy. Big corporations have been looted. Remember Enron? how many people lost their jobs, their 401-K's and pensions. We all know or should know that the Federal Reserve Bank is corporate owned and should be closed. Let's start there, demand that it be closed. The nation is paying extremely high interest to this enterprise to borrow money and the national debt is in the trillions. The One World Government that President Bush, Sr. talked about when he was president is here now and they are dismantling the economy in this country and all around the world to bring about the biggest totalitarian regime the world has ever seen. The money is controlled by a handful of the elite - the international bankers. Some say, a new change in the White House is coming and I'm going to vote for it. No matter what candidate you vote for, Obama or McCain, (both poor choices), they both pledge allegiance only to their controllers. Patriotism is not involved. Obama could not have said it better yesterday on TV, "if we win, we will change this country and we will change the world" I think this time he's telling the truth (think One World Government). If I had to chose to vote for what's available, I would vote Independent for Nader or Barr. I don't know if it's too late to do anything about changing the direction our country is going, but I would start by really inquiring and doing some research to find out what's really going on. If you look to the Media and the Press for knowledge, there is not too much going on there - mostly smoke screens and missinformation. Do some reading, start with "Masters of Deception" by J. Edgar Hoover, you can buy it used on the Internet. Once you have found out who are really responsible for this financial mess, spread the word, tell your family, friends, anybody you can. I know this may not be the place to say this, but it is time We the People, pray and repent as a Nation: â€œIf My people who are called by My name will humble themselves and pray and seek My face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and heal their land.â€ â€” (II Chronicles 7:14) Tell your family, friends, anybody, Hurry, the time is short..... A concerned Citizen

RE:Are Freddie and Fannie Insolvent?

Anonymous — Thu, 10 Jul 2008 11:00:00 GMT

You know, I worked at a start up company with a girl that had worked for Fannie Mae for a long time. She gave a lesson to a small group in the company on money movements in the Mortgage Industry. How Freddie and Fannie lend money to the banks and lenders and mortgage correspondants, then the money comes down to the people that buy homes with a mortgage, sometimes through a Mortgage Broker. Describing this very same scenario above, she said how these two big money houses were teetering on failure. It is interesting to read this story, especially when I worked for this start up company almost 8 years ago. Which is the same time she went over this possible scenario. Well before the current market conditions, she predicted a possible collapse in credit. I can not confirm or remember if she gave her notice or if she was laid off.

RE:Are Freddie and Fannie Insolvent?

Renee — Thu, 10 Jul 2008 11:00:00 GMT

Alan hit the nail on the head. Reputable appraisers have seen the current debachle coming for years and been able to do nothing to stop it because we simply do not have the lobbying power and influence of the lending/banking industry. My local lenders as well as the big names out thereWells Fargo and RELS for one, are professing to have cleaned up their act, but now go to rotating lists where they only employ the cheapest and fastest, which in our market includes appraisers with less than 3 years experience and very limited training if any real training. People who "trained" under folks with suspended licenses now own their own companies and truly have no oversight to their incompetence. Experienced appraisers are getting pushed out of the market and have to sit on the sidelines as we wait for the mortgage industry to have its next crash when these next borrowers default when they try to sell homes that had inflated appraisals and values when they purchased.

RE:Are Freddie and Fannie Insolvent?

Grace — Thu, 10 Jul 2008 11:00:00 GMT

The solution to the housing and foreclosure mess is that lenders and borrowers be forced by law to work out new loan agreements, terms, loan payment amounts based on borrowers ability to pay even if it is a very small amount, etc., or even if it takes the borrower 40-50 years to pay instead of 30 years. Both the borrower and lender should be responsible for the property in question instead of allowing lenders the upper hand to use judicial foreclosures and or borrowers be allowed to just walk away. The absence of such responsibility on both the lenders and borrowers part spells imminent diaster to the whole economic system and world economy, neighborhoods, jobs, etc.

RE:Are Freddie and Fannie Insolvent?

Alan — Thu, 10 Jul 2008 11:00:00 GMT

All I know is that I have not been able to get lenders appraisal work for the last 10 years. If lenders do not consider the person who values the collateral important, aren't they really saying that the collateral itself is unimportant? I think current events show that the value of the collateral is important, a lesson you would think would not need to be re-learned every business cycle. Would corrupted judges paid for by one party provide stability and trust in the justice system? Appraisers are supposed to be the real estate equivalent of judges, smart, knowledgeable and independent. The lenders still have not learned..it seems they will do anything rather than pay a locally competent appraiser a professional fee to provide collateral value services...I see lenders using national providers and purchasing AVM's, BPO's, appraisal reviews of BPO's, out of state appraisers reviews of appraisals in markets for which they have no local data and no geographical experience.... My work is not ABC easy, despite what all the parties to the process seem to believe...Appraisals require many choices be made that require experience, judgement and wisdom. As lenders race to reach the bottom in terms of quality, pay and ever more rapid turn-time requests, qualified appraisers are forced out of the business. AMC's continue to gobble up the appraisal fees, providing convenience for the lender, but destroying the appraisers ability to earn a livable wage. I have 20 years of unblemished work in this field, but no one seems to know or care. Had lenders utilized quality appraisarls, their exposure to this financial crisis would be so much less....Quality appraisal work is truly "pearls before swine", not appreciated, not searched for but standing on the sidelines as the country spins into an incredible but completely avoidable financial meltdown. I would laugh and enjoy the justice that reality and common sense are dealing out right now, but that doesn't put bread on my table.