On Wednesday June 29^th I had the pleasure of a short afternoon break where I turned on CNBC to catch up on the mystery of the markets and all the wonderful news the world has to deliver.  Low and behold what was the first thing I saw?  A man and a woman from Congress talking their talk on the box discussing the process of trying to work out the new financial reform bill.  The Congressman then defiantly stated that Fannie Mae had “NOTHING TO DO” with causing the housing and financial crisis.  Right about then smoke started to steam out of my head.  Can you believe this baloney?

 

For the record lets drill down on Fannie Mae and Freddie Mac with a mortgage insiders view so we can separate the political posturing by the lying idiots in Congress from the facts.  Both of these institutions were in fact publically traded companies.  They were considered Blue Chips with a 2 billion dollar credit line and a “quasi” government guarantee.  They had a government guarantee alright.  The government i.e. the master IDIOT Bernard Frank commanded that Fannie and Freddie make non prudent loans to people that couldn’t qualify for loans.  Barney boy went on the record on Fox News a few years back with this quote “we are going to roll the dice with Fannie Mae to expand home ownership in America”.  He sure did a good job.  Of course now he claims that no one should blame him for the housing crisis.  I agree completely.  We put everybody in homes with bogus mortgages they didn’t qualify for under the false pretense of integrity and goodwill provided by the blue chip stalwarts of Fannie and Freddie and now they are completely insolvent and we have a total bust.

 

Let’s drill down a bit more.  Fannie and Freddie both had DU & LP.  There were automated underwriting modules whereby the loan company would put in perspective borrower employment and income criteria to obtain a loan decision.  Nobody new who controlled the infamous “BLACK BOX” the programmed the variables of the great decision making module.  It was bigger than the scam “The Wizard of Oz” had going. No one dared to question the dispositions when the great automated underwriting modules spit out approvals.  No one except me and normal Americans that know to cross the four lane highway at the overpass.

 

If you had a job and good credit you were pretty much approved. How do you justify approvals based on credit and loan to value with a 67% debt to income ratio?  Don’t question the black box was the mantra.  It’s approved so you look the other way and fund the loan.  Who cared?  Nobody.  The question now is who was the secret programmer to the Black Box?  Was it the great Franklin Raines homeboy extraordinaire CEO of Fannie that lost 11 billion but still got a huge severance because he was a minority or was it Barney and Club? 

 

You make the call but all I see is lies and deceit.  Fannie did not cause the financial crisis in housing.  I completely agree.  It wasn’t the gun that killed the innocent victim.  It was the bullet that came out of the gun.  Fannie and Freddie were the silver bullet enablers that helped devastate the housing market.  They were not the only culprits but both of these agencies were the front runners for years that lead the secondary mortgage guidelines.  As the agencies got more aggressive so went the secondary players. 

 

Where are we now?  Millions of Americans that wanted a home are stuck in a down draft of deflation completely underwater on their homes.  Now the government and all the pundants want them to do the right thing.  My question to you given how crooked the system and the players are is what is the right thing?  Should you go broke or save your family with a Short Sale thereby putting the hot proverbial poker up the rear-end of the government and all the greedy investors that are stuck holding your underwater mortgage. HMMMMM…..  I say the latter.  If you are not given a level playing field in my opinion it’s live by the sword and die by the sword.  Don’t let the lies and pressure of moral character sabatosh your finances and overall well being. 

 

Come see me at www.thenegotiatedsolution.com for the solution. Don’t go broke in the process. If you are underwater on your home and angry that you are stuck in this mess it may be time to fight.  Don’t listen to the lies and the bogus government posturing supported by the failed programs.  Loan Modifications are lies and a means of the lenders shaking you down.  Stop & Avoid Foreclosure and get out of this mess with a Short Sale.  The lenders are preying upon the people in their efforts to try to maximize recovery. Nobody is looking after your interests.  You owe them all the money and they own you until they don’t.  When you are looking to save your family and general well being ask your lender and your Congressman for respect and help with your house that is severely underwater.  When you get the answer make the determination if you need an accountant of a team of hired guns?  Sleep well. 

 

Blogging from the front line of the housing crisis.

 

GHunter

Submitted on Friday, July 2nd, 2010 at 7:48 am