Martha Coakley Gets a Partial Win on Foreclosures


Boston Magazine has the article Martha Coakley Gets a Partial Win on Foreclosures.

In a decision announced Tuesday, the Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac to start selling back foreclosed properties to their previous owners, either directly or through third-party organizations. Their previous refusal to do so was the impetus for a Massachusetts state law and subsequent lawsuit, brought by Coakley’s Attorney General office.
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The new policy will apply only to some 125,000 current Fannie and Freddie holdings, but not those foreclosed on in the future.
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Federal officials have expressed concerns that the policy could encourage home owners to go through foreclosure in order to buy back their homes at the current, lower price.

Apparently the Fannie Mae and Freddie Mac see great moral hazard in the poor getting a break in the real estate collapse caused by the wealthy, criminal bank executives.  It is also apparent that they see no moral hazard in these same crooks being able to take advantage of the very collapse they caused.  This is not even counting the break these criminals got by being able to stay out of jail.  Fannie Mae and Freddie Mac were willing to go out of their way to prevent poor homeowners from getting any relief and for prolonging the real estate collapse rather than allowing even a few petty crooks to take  advantage the way the gigantic crooks did.  Maybe they don’t understand that even if all 125,000 aggrieved former  home owners got an unfair break, it wouldn’t come anywhere near the damage that the 5 biggest banks in this country caused.

Sarcasm Alert
But don’t attribute these double standards to class warfare. Only flaming liberals believe there is class warfare.

Thanks to Jacquelyn Wells for posting this on her Facebook page.

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