It's hard to Believe the Gnomes at Freddie and Fannie didn’t know what they were buying

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It’s hard to Believe the Gnomes at Freddie and Fannie didn’t know what they were buying

Posted on07 September 2011. Tags: 17 Firms, Ally Financial, bank of america, Barclays, CitiGroup, countrywide, Credit Suisse, deutsche bank, fannie mae, federal housing finance agency, fhfa, first franklin, First Horizon, foreclosure fraud, Freddie Mac, general electric, goldman sachs, HSBC, Jim Boswell, jpmorgan chase, Kevin Villani, lawsuits, mbs, Merrill Lynch, Morgan Stanley, mortgage backed securities, Nomura Holding America, Quanta Analytics, REMICs, securities fraud, securitization, Societe Generale, The Royal Bank of Scotland PLC

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!

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[AMERICAN BANKER]

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This post was written by:

dinsfla - who has written 3707 posts on FORECLOSURE FRAUD | by DinSFLA.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

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3 Responses to “It’s hard to Believe the Gnomes at Freddie and Fannie didn’t know what they were buying”

The Last of the Mohicans says:

09/07/2011 at 7:27 pm

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?
Brad Vincent says:

09/09/2011 at 9:52 pm

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.
dinsfla says:

09/09/2011 at 10:05 pm

It was taking form in the 1980′s. I wrote this http://stopforeclosurefraud.com/2010/09/22/no-theres-no-life-at-mers/ and have loads that was left out intentional.