As I sat in court this morning listening to all the goings on with servicers (remember, servicers are merely debt collectors acting on behalf of investors otherwise know as the adjuncts of the federal government Fannie Mae and Freddie Mac).
You still buying into the outright delusion that Fannie/Freddie are ONLY costing like $180 Billion or whatever the fictional number they trot out on a monthly basis?
Well, I got news for you kiddies…..that number ain’t nearly even the tip of the iceberg. What about the millions of short sales and case dismissals where the homeowner has a letter from a servicer agreeing not to pursue a deficiency judgment? What about the underlying foreclosure judgment? Or what about the original promissory note, owned by Fannie/Freddie that’s still floating around in the stream of commerce?
What about that hearing I attended this morning where the servicer admitted that while they did indeed provide a written waiver of deficiency, admitting in writing that they will not pursue a deficiency…they were required by Fannie to turn the original note over to Fannie…AND THERE IS NO PROMISE THAT FANNIE WILL NOT PURSUE ANY DEFICIENCY….
Here’s my proposition….
Fannie/Freddie reports their liability to Congress based on the outstanding liabilities, but FANNIE AND FREDDIE ARE STILL REPORTING AS COLLECTABLE ASSETS NOTES THAT HAVE BEEN SETTLED AS PART OF SHORT SALES OR EVEN BANKRUPTCIES…..IF FANNIE REPORTED THE OUTSTANDING LIABILITIES OF THE OUTSTANDING DEBTS, THE LIABILITY WOULD BE MUCH GREATER!
(there is a massive shell game/delusion that we are all feeding into)
It should be easy to find answers to such questions. But while it’s a snap to find rosy administration claims about the bailout, finding hard numbers is much more difficult. That’s why, since the bailouts began in 2008, we’ve maintained a frequently updated site to provide them. Now we’ve retooled our database to make it even easier to find these sorts of answers.