Freddie Mac and Fannie Mae "compromised" the purposes of affordable housing goals by engaging in several large and "questionable" mortgage transactions in 2003, according to a report by the majority staff of the House Financial Services Committee."These large-scale transactions did not violate the letter of the law," the staff report says. "However, there is a legitimate question as to whether the GSEs violated the spirit of the housing goals." The multibillion-dollar transactions allowed the two government-sponsored enterprises to hold residential and multifamily loans for goal purposes, even though the sellers had the right to dissolve the transactions and take back the loans without forfeiting the premiums they receive from the GSEs. Committee staffers also found that some of the transactions contained old mortgages (10-20 years old), which does not contribute toward increasing affordable housing. "The fact that many of the loans have been in repayment for over a decade and are included in transactions that can be collapsed without penalty by the seller means that the purposes of the affordable housing goals have been compromised," the report says.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25 -
Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
April 25 -
Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
April 25