Today I read an article titled "Top House Democrat demands explanation of penalties for late foreclosures" at thehill.com. Reading it made my stomach turn, as it was yet another sad testament to the current leadership (on both sides of the aisle) for our beloved country.
What made me ill about this particular article is the fact that I wrote a blog post on this debacle on ActiveRain on October 1, 2010, just one month after Fannie & Freddie announced that they would begin charging lenders for not foreclosing "in a timely manner". At the time, I thought it was a joke that a taxpayer-owned entity would now be charging fees to lenders who didn't fast-track foreclosures, and ultimately take the homes away from the very people who had recently bailed them out. As usual, I sent the blog post to as many elected officials that I could think of, and never heard anything.
Fast forward 13 months. Lo-and-behold a politician finally got wind of this program, and is now questioning Fannie & Freddie about this practice. Can you say "election year"?
With all of the buzz in the news lately about Fannie & Freddie executive bonuses (and the fact that they have cost the American taxpayers over $180 Billion to date), we all knew that it was just a matter of time before our elected officials started to dig deeper. Afterall, it's an election year. Kudos to Elijah Cummings (D-Md.) for stepping to the plate. I just wish someone like him had read my blog in October/2010, BEFORE Fannie & Freddie started penalizing lenders for not taking homes back in what they deem "a timely manner". Who knows how many homes could have been saved over the past year if someone with a backbone had stood up to Fannie/Freddie when the program was officially announced on August 31, 2010. The article states that Fannie & Freddie have charged lenders and servicers $150 Million+ thus far.
Feel free to read my blog post from October/2010 to learn more about the program, and how it is managed in each state. It may just give you some insight into why Fannie/Freddie has been so difficult to deal with over the past year.
As for our elected officials, perhaps we should encourage them to subscribe to ActiveRain? Oh, wait a minute...They won't listen anyway...
Until Next Time....
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Copyright © By Bob Hertzog 2011 *Elected Officials Need To Subscribe To ActiveRain!...A Classic Case of "I Told You So"...*
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