This is a great article written by Kevin Villani who was senior vice president and chief economist at Freddie Mac from 1982 to 1985.
American Banker-
In the 1980s Freddie Mac had a marketing campaign “The Gnomes Know,” touting their expertise in mortgage markets. Now the Federal Housing Finance Agency has filed a $200 billion lawsuit against 17 of the nation’s largest mortgage lenders arguing that during the subprime lending debacle of the last decade the gnomes didn’t know!
Fannie Mae and Freddie Mac helped create the Mortgage Electronic Registration System (MERS) during the 1990’s. Therefore, one could argue they do not have “clean hands” and have no right to sue or complain about the mess that resulted.
But FYI, the article you referenced (“the gnomes know”) was written during the 1980’s, well before MERS was created. Thus, the author would have no way of knowing what was going to happenn once MERS was created.
The gnomes may have known what was going on before MERS, but after MERS was created much was hidden from view. Once things are hidden from view it opens the door for fraud to occur–which it did.
What about all of those homeowners of these backed loan securities that Fannie Mae and Freddie Mac DID NOTHING TO HELP! Do any of them get help now?
Fannie Mae and Freddie Mac helped create the Mortgage Electronic Registration System (MERS) during the 1990’s. Therefore, one could argue they do not have “clean hands” and have no right to sue or complain about the mess that resulted.
But FYI, the article you referenced (“the gnomes know”) was written during the 1980’s, well before MERS was created. Thus, the author would have no way of knowing what was going to happenn once MERS was created.
The gnomes may have known what was going on before MERS, but after MERS was created much was hidden from view. Once things are hidden from view it opens the door for fraud to occur–which it did.
It was taking form in the 1980’s. I wrote this https://stopforeclosurefraud.com/2010/09/22/no-theres-no-life-at-mers/ and have loads that was left out intentional.