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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (283408)	10/14/2010 1:04:12 PM
From: Broken_Clock	Respond to of 306849

FHFA: Watch The Misdirection This is infuriating.... "Today, I am directing the Enterprises to implement a four-point policy framework detailing FHFA’s plan, including guidance for consistent remediation of identified foreclosure process deficiencies. This framework envisions an orderly and expeditious resolution of foreclosure process issues that will provide greater certainty to homeowners, lenders, investors, and communities alike. In developing this framework, FHFA has benefitted from close consultation with the Administration and other federal financial regulators. The country’s housing finance system remains fragile and I intend to maintain our focus on addressing this issue in a manner that is fair to delinquent households, but also fair to servicers, mortgage investors, neighborhoods and most of all, is in the best interest of taxpayers and housing markets." One word: BULLF&#KING%$IT. FHFA testified under oath before the FCIC that the GSEs do not have the loan files when they examine for fraud - that is, breaches of representations and warranties. (Yes, selling someone something you claim is a gallon of gasoline when it's really a gallon of water is fraud folks, not "a mistake.") They further testified that they are being stiff-armed by the banks in obtaining those files, to the point they have had to file subpoenas. But Fannie and Freddie should have those files if the REMICs - the securities they've offered to investors including the public - complied with their Prospectuses and Pooling and Servicing agreements. If the certifications that were made are accurate, the files are in Fannie and Freddie's possession. But FHFA has testified - under oath - that those files are not in their possession. You can't have this both ways. Either you really did take in the notes, in their entirety and properly endorsed as required and which was certified to have happened or you did not. If you did not, then the GSEs defrauded the investor by attesting to have taken only notes that conformed with the quality standards stated, and to have actually received conveyance. If you did, then why are you now asking - and subpoenaing - files you should already have? Audits are part and parcel of ordinary business activity. Compliance audits are part of diligence and fiduciary responsibility. Those who offer something to the public have that standard of care - if you represent something in an offering prospectus or legal agreement then you have a duty, within your ability and the boundaries of what you claim, of performance. There's plenty of evidence at this point that not only did the private-label market not meet those requirements, neither did the GSEs. market-ticker.org