Freddie Mac Bets Against American Homeowners

Freddie Mac Bets Against American Homeowners
By Jesse Eisinger, ProPublica and Chris Arnold, NPR News Jan. 30, 2012

 Freddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates. But the trades, uncovered for the first time in an investigation by ProPublica and NPR, give Freddie a powerful incentive to do the opposite, highlighting a conflict of interest at the heart of the company. In addition to being an instrument of government policy dedicated to making home loans more accessible, Freddie also has giant investment portfolios and could lose substantial amounts of money if too many borrowers refinance.

New Law Has Stalled, Not Stifled, Foreclosures
By David McGrath Schwartz, Las Vegas Inc., Jan 29, 2012

Banks have stopped filing new foreclosure notices in Nevada, but that doesn’t mean the housing crisis has passed. In fact, bankers say a new law that took effect in October has put bank foreclosures on hold and is preventing the Las Vegas housing market from finally hitting bottom and “returning to normal,” Bill Uffelman, president of the Nevada Bankers Association, said.

Who Benefits from Possible $25B Mortgage Settlement?
By Julie Schmit, USA TODAY

After nearly a year of negotiations, federal and state officials and major mortgage servicers are moving closer to a multibillion-dollar settlement over alleged foreclosure and mortgage loan-servicing abuses. A deal could be finalized by early February, some officials say, although that's not a certainty. And its terms could change.  Based on interviews with officials on both sides of the negotiations, USA TODAY reporter Julie Schmit explains what a potential settlement might include and what it's likely to mean for borrowers and the housing market.

Is Obama's 'Economic Populism' for Real?
By Matt Taibbi, Rolling Stone, Jan 26, 2012

There is a lot to digest in a recent series of events on the Prosecuting Wall Street front – the two biggest being Barack Obama’s decision to make New York Attorney General Eric Schneiderman the co-chair of a committee to investigate mortgage and securitization fraud, and the numerous rumors and leaks about an impending close to the foreclosure settlement saga.