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This looks like an important bit of actual journalism from an American newspaper (Detroit Free Press)

Fannie Mae promises to keep families in homes, but instead pressures banks to foreclose

The first of a three part series, the article details how internal Fannie Mae records show a pattern of forcing sales of the homes of families whose payments are delinquent, even as the families were being assured they could obtain mortgage relief.

In addition to shoving families to the curb, this only worsens the situation in neighborhoods with sharply declining property valuations.

Furthermore, the US Taxpayer is on the hook for losses on these loans, thanks to the federal bailout.

Government of the 1%, by the 1%, for the 1%! They took the "risks" (actual risks may vary), we get to pay  (something like $400 billion, when all is said in done), and some of us get the shaft anyway (and end up on the street).

The [confidential] records cover Fannie Mae's foreclosure decisions on more than 2,300 properties, a snapshot from among the millions of mortgages Fannie handles nationally. The documents show Fannie Mae has told banks to foreclose on some delinquent homeowners -- those more than a year behind -- even as the banks were trying to help borrowers save their houses, a violation of Fannie's own policy.

The article tells the story of one couple, Steve and Leisa Fenton, who lost their home while negotiating the "Home Affordable Modification Program (HAMP)". But their house was sold in a Sheriff's sale and Fannie Mae would not permit the sale to be rescinded. Apparently this is happening over and over. Fannie is trying to get a certain percentage of the delinquent loans off the books every year, no matter what the market conditions and no matter that desperate families are trying to keep their houses.

"Fannie just wants to clean up its balance sheet and get these loans off the books while taxpayers are eating these losses," White said, referring to the multibillion-dollar federal bailout of Fannie Mae in 2008 and the rising cost to taxpayers... It's a huge waste. Wealth is being destroyed, people are losing houses needlessly, and taxpayers are losing money."

And here's the kicker:

Fannie Mae officials declined to be interviewed and would not address the issues raised in the records obtained by the Free Press, including a lengthy series of questions provided by e-mail.

If you want to find out what's going on apparently you have to pay more than $400 billion.

[UPDATE:] One other thought, if you look through the comments on the Free Press article, there are some anti-government comments. The first one says "I'm from the government and I'm here to help" -- the famous Reagan quote. But the thing is Fannie Mae isn't the government. People get that confused, because it's pretty murky having a quasi-government for-profit company that is basically holding up the entire mortgage market at this point (there are few private banks or S & L's waiting to lend you money if they cannot immediately roll the loan over to FNMA!) So what these acts of Fannie Mae repeatedly kicking families to the curb do, is play exactly into Republican memes about how government doesn't help. One family at a time, making more possible candidates for Teabag recruitment.


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