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Get Ready For More Bank Threats

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Get Ready For More Bank Threats

Be prepared for a new round of "tanks in the streets if you don't cut that crap out!"

The Federal Housing Finance Agency on Monday said it had issued 64 subpoenas to unnamed firms in an effort to uncover misleading statements that Wall Street banks and others may have made when they bought and packaged risky mortgages into securities. Fannie and Freddie were two of the largest investors in those securities.

And why would the FHFA have to issue subpoenas? I mean, couldn't Fannie and Freddie just ask for the data they wanted?

The FHFA said that it had opted to issue the subpoenas after being rebuffed in earlier efforts to collect loan files.

Oh, I see. The banks were asked, and replied:

Well now why would they do something like that? You don't think there might be something to hide, do you?

Like, perhaps, that they didn't have good recordable titles? That they had endorsements-in-blank and thus couldn't record them? That they either knew or had every reason to believe that the claimed levels of income and/or assets didn't exist? That the appraisals were doctored?

Naw, none of that stuff happened, right? There weren't any straw buyers, there weren't any second-home riders executed on investment properties, why there wasn't any fraud at all that was perpetrated during these years and then sold off to Fannie and Freddie, pocketing a spread and (attempting to) stick the taxpayer with a few hundred billion in losses, right?

This ought to get good.

I'm sure they have nothing to hide.

Don't the banks have a dilemma with this, lets assume they do have something to hide and have committed massive fraud and there's a paper trail to prove it what do they do? If they shred then a judge might say the banks have no proof of ownership over the loan and the debtors get to keep the house. Don't shred and they might get a slap wrist and a fine (obviously not jail).

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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