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    FANNIE AND FREDDIE

    FANNIE AND FREDDIE

     

    Eleven state attorneys general led by Massachusetts Attorney General Martha Coakley, sent a letter to Edward DeMarco, Acting Director of the FHFA, urging him to allow Fannie Mae and Freddie Mac to move forward with principal reductions.  The letter doubled down on the FHFA to “preserve assets and prevent unnecessary foreclosures by implementing loan modifications that include principal write-downs.”

    http://www.dsnews.com/articles/index/eleven-ags-send-letter-urging-demarco-to-reverse-course-2012-04-13

    I find it ironic that the FHFA is suing Wall Street and almost every bank for, among other things, “inflated appraisals.” Who the hell does DeMarco think is stuck in that fraud, the upside down homeowner!! He has no problem suing the banks for this issue, but refuses to assist the victim of the crime? Here is an excerpt from one of those suits, FHFA v. The Royal Bank of Scotland, RSB Securities, Inc., Greenwich Capital Markets, Inc., RBS Financial Products, Inc., RBS Acceptance, Inc., and Financial Asset Securities Corp.

     

    “Accordingly, an accurate appraisal is essential to an accurate LTV ratio. In particular, an inflated appraisal will understate, sometimes greatly, the credit risk associated with a given loan.”

    “As discussed below at paragraphs 103-108 the Registration Statements for the Securitizations materially understated the percentage of loans in the Supporting Loan Groups with an LTV ratio at or less than 80 percent, and materially understated the percentage of loans in the Supporting Loan Groups with an LTV ratio over 100 percent, thereby misrepresenting the degree of risk of the GSE certificates. “

    AND THE RISK TO HOMEOWNERS-With all due respect Mr. DeMarco, reducing principal, fixing the fraud for the homeowner should be a no brainer.

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