TARPed AGAIN FOLLOW UP
I posted earlier a commentary on FHFA's lawsuits against MBS issurers: http://www.biggerpockets.com/blogs/2023/blog_posts/17900-tarped-again
Here's a follow up that had me saying WTF ?
From HousingWire.com, 9/6/11:
According to the lawsuits, the FHFA found evidence of violations in $200 billion worth of MBS sold to Fannie and Freddie… (My emphasis added)
…FHFA stressed in a statement Tuesday that the damages being sought in the suits will not be based on the original amount of the securities purchased, rather the recoveries of losses associated with the alleged violations… WTF??
…It would take roughly $60 billion to remedy the claims, however analysts said a settlement could be made for less… Where can I settle my debts for $0.30 on the Dollar and still be able to borrow at 0.25%??? Watch this one. I smell a bail out for less than .30 on the Dollar.
…FHFA also defended its actions to those who claim the suits will only hamper lending and further postpone the already stalled economic recovery… If that’s the case, why file suit. Will wonders never cease?
I’m going to keep a close eye on this deal. Like dead fish…..
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