The Federal Housing Finance Agency (FHFA) has the job of conservator for Fannie Mae and Freddie Mac. FHFA's Inspector General (IG) does not think FHFA did a good job when dealing with BofA, which, like other mortgage holders, was allowed to sell some of its mortgages to the agencies. However, the mortgages had to meet certain criteria; those that did not meet the criteria had to be re-bought by the mortgagor.
Well, the IG asserts that there was little review of BofA's mortgages and we lost billions of dollars when the agencies settled with BofA. Furthermore, it looks like many more billions will be lost unless the agencies change their loan review process. It should be noted "that over 93% of the year-to-date [loan] foreclosures from the 2005 and 2006 [loan] vintages have been excluded from [loan repurchase] review.”
So, one could easily see that there was probably a problem here and FHFA was not doing its job of conservator. The question is will the agencies and FHFA do the job for which they are being paid and ensure that we don't lose any more money.
Well, the IG asserts that there was little review of BofA's mortgages and we lost billions of dollars when the agencies settled with BofA. Furthermore, it looks like many more billions will be lost unless the agencies change their loan review process. It should be noted "that over 93% of the year-to-date [loan] foreclosures from the 2005 and 2006 [loan] vintages have been excluded from [loan repurchase] review.”
So, one could easily see that there was probably a problem here and FHFA was not doing its job of conservator. The question is will the agencies and FHFA do the job for which they are being paid and ensure that we don't lose any more money.
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