Not surprisingly the FHFA has some sharp criticism of Fannie Mae and Freddie Mac. Who can blame them, right?
Specifically the FHFA is upset because they gave all GSEs strict guidelines about how to improve their handling of mortgages and it turns out the Fannie and Freddie have been ignoring almost all of them.
Some of the most glaring issues: not responding to requests for assistance from borrowers, not conducting loan mods on time, and foreclosing before deadlines.
What does this mean for the industry? Have we let a new crisis build up right under our noses? What’s the damage and what does it mean for the future?
To tell you the truth, I don’t think it’s all bad. I mean, did we really expect the GSEs to change their tunes the first time they were told to? No way. Good thing they got caught now. Hopefully, the real problems will be addressed. And remember, the causes of the housing crisis and financial meltdown had been building up for years. I don’t think this is more than a hiccup.
What do you think about this? Want to forgive and forget with Fannie Mae and Freddie Mac?