Freddie Mac Responds To Dubious Trade Allegations
The higher-ups at Freddie Mac are responding to recent allegations of suspicious trading with puzzlement, NPR reported late Friday.
In response to an investigation which revealed that Freddie Mac placed multi-million dollar bets that paid off if homeowners maintained mortgages with high interest rates, rather than refinancing, Edward DeMarco, the acting head of the Federal Housing Finance Agency (FHFA), told NPR’s Steve Inskeep that he is “completely puzzled by the notion that there was something immoral that went on here.”
Edward DeMarco [said] that Freddie Mac’s actions were “in the class of ordinary business transactions.” The “reverse floaters” in Freddie Mac’s investment portfolio did not affect the agency’s efforts to stabilize the mortgage market. Instead, DeMarco characterized the investments as part of Freddie Mac’s effort to make sure it doesn’t lose money.
The FHFA explained that Freddie decided to stop investing in the inverse floaters in the spring of 2011, and insists that the traders are “walled off” from the rest of the mortgage lender. According to The Wall Street Journal, lawmakers are currently pushing DeMarco to explain why the trades were ever retained.
See other articles related to: freddie mac, mortgages, npr, propublica
This article originally published at https://dc.urbanturf.com/articles/blog/freddie_mac_responds_to_dubious_trade_allegations/5068.
Most Popular... This Week • Last 30 Days • Ever
In this article, UrbanTurf will explain what special assessments are, how they work, ... read »
Nearly 1,400 residential units are on the boards around Union Market, about the same ... read »
Plans are moving forward at the site of a long-planned project in Ivy City, however w... read »
Up 8% year-over-year, it is the first time that prices have exceeded $800,000 for det... read »
If there was ever a place where the old adage “one man’s trash is another man’s... read »
- What Are Special Assessments in Condo Buildings and What Do They Cover?
- Hotels, A Public Park and The 1,400 Units In The Works For Union Market
- Douglas Development Pitches Large Warehouse For New City Site Along New York Avenue
- The Price For A House in The DC Area Hit A New High in April
- Tile, Furniture, Appliances & (Much) More -- The Local Warehouse Chock Full of Salvaged Home Goods
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro