How Fannie Mae Is Pushing Homeowners Further Underwater

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Wednesday February 17, 2010 · 2:00 PM PST

2010/02/17 · 14:00

We didn't break Fannie Mae and Freddie Mac, but we own them. Taxpayers have already paid $112 billion to the two entities. Now we may be doubling-down on that bet. According to the New York Times, shortly before Christmas the Obama administration,

"quietly disclosed that it had, in effect, given the companies a blank check by making their federal credit line unlimited; the ceiling had been $400 billion."

But, what are we getting for our billion dollar investment?

Wall Street, K Street, and our leaders in Washington tell us that helping Fannie Mae and Freddie Mac is essential to helping the US housing market recover. But, it doesn't appear that Fannie Mae or Freddie Mac are necessarily committed to that goal. They are, instead, pretending like it is still 2005 and housing prices will never fall.

Rather than forgive some of the principal balance of homeowners who are facing foreclosure, Fannie Mae and Freddie Mac both expressly prohibit their mortgage loan servicers from lifting some of the burden from underwater homeowners.

consumerlawyer

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Monday February 08, 2010 · 10:49 AM PST

2010/02/08 · 10:49

We often hear about the role that the pharmaceutical industry, for-profit health care companies, and big banks have in influencing and corrupting elections and elected officials. But there is another group to add to this list: Debt Collectors. This is a billion dollar industry, and its political agenda goes far beyond the day-to-day regulation of collecting debts. The debt collection industry opposes any number of financial reforms as well as access to health care. Why? Predatory lending and huge health care bills keep people in debt. The more people that are in debt, in turn, the more profitable the industry.

In essence, debt collectors are the bottom-feeders that get rich digging and feeding on the garbage produced by our current system.

This broad political agenda was the reason the debt collectors trade group, Association of Credit and Collection Professionals or ACA, mobilized on behalf of Scott Brown. For 48 hours before the election, ACA did not just raise a little money for Brown. ACA members from all over the country stopped collecting debt and, instead, made free calls to voters is Massachusetts on behalf of Brown. Query whether those in-kind donations will ever be reported to the Federal Elections Committee.

consumerlawyer

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Sunday February 07, 2010 · 3:33 PM PST

2010/02/07 · 15:33

This is my first diary. I'd been thinking about writing a diary for a long time, and I always put it off. The reasons were probably common to many of you---"It is for somebody else to do." "I am too busy." "I've got nothing different to say." Then I realized that, as a consumer lawyer, I have a little different view on the economy and the major issues being debated at the local and national level. As a lawyer, you often have an opportunity to dig deep into issues of race, poverty, and economic exploitation. So here we are...

My first diary is about President Obama's loan modification program. It's called the Home Affordable Modification program or HAMP, and by all accounts it is not working. The question is why? There are a myriad of little reasons, but I think there is one big reason: accountability.

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How Fannie Mae Is Pushing Homeowners Further Underwater

Debt Collector's Untold Role In Scott Brown Victory

Opening The Government's Loan Modification Black Box