BETTING ON MISERY - Freddie Mac Bets Against American Homeowners
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BETTING ON MISERY
Freddie Mac Bets Against American Homeowners
FREDDIE MAC IS BETTING AGAINST HOMEOWNERS GETTING OUT OF EXPENSIVE MORTGAGES | NPR and Propublica http://www.propublica.org/article/freddy-mac-mortgage-eisinger-arnold reported today that the government-backed mortgage giant Freddie Mac is making it harder for troubled homeowners to get out of high interest rate mortgages, while at the same time placing “multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages.” “We were actually shocked they did this,” says Scott Simon, who works for the bond trading firm PIMCO. The trades “put them squarely against the homeowner,” Simon said. Freddie Mac claims its traders are walled off from the rest of the company so that no coordination could have taken place.
http://www.propublica.org/article/freddy-mac-mortgage-eisinger-arnold
http://thinkprogress.org/economy/2012/01/30/414176/freddie-mac-betting-mortgages/
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