Tag: HARP

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Eminent Enabler: Congress Prohibits HUD and Ginnie Mae from Facilitating Local Government Seizure of Mortgage Loans
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Freddie Mac’s Refinancing Policy

Eminent Enabler: Congress Prohibits HUD and Ginnie Mae from Facilitating Local Government Seizure of Mortgage Loans

By: Laurence E. Platt

At least for the next year, Congress has materially impaired the ability of local governments to seize underwater residential mortgage loans through eminent domain by cutting off federal insurance or guarantees to refinance the seized mortgages and then securitize the refinancings. Without this federal “take out” through mortgage insurance provided by the Federal Housing Administration (“FHA”), and guarantees of mortgage-backed securities by the Government National Mortgage Association (“Ginnie Mae”), local governments will have to find private sources of long-term funding to pay for loans that they attempt to seize.

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Freddie Mac’s Refinancing Policy

By: Kerri M. Smith

NPR and ProPublica charged Freddie Mac with investing in securities that would lose value if homeowners refinanced their mortgages. The primary allegation is that such investments undercut Freddie Mac’s public mission and resulted in a more stringent refinancing policy. Read More

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