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Freddie Mac Bets Against American Homeowners

Wed, 02/01/2012 - 13:50 — Dave Culver
Section(s): 
Business
Government & Politics
  • The taxpayer-owned mortgage giant made investments that profited if borrowers stayed stuck in high-interest loans while making it harder for them to get out of those loans.
  • Attorneys General, Frustrated With National Foreclosure Settlement, Consider Alternate Course

Jesse Eisinger, ProPublica, and Chris Arnold, NPR News

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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.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages.

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Related:

Attorneys General, Frustrated With National Foreclosure Settlement, Consider Alternate Course, Loren Berlin, Huffington Post
The participating attorneys general or representatives from California, Nevada, Delaware, Massachusetts and New York, Hawaii, New Hampshire, Missouri, Mississippi, Maryland, Kentucky, Minnesota, Oregon, and Montana discussed how they could possibly join together to investigate and potentially file lawsuits against abusive mortgage lenders and servicers.
 

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