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Tell President Obama: Time For DeMarco To Go! - petition
More DeMarco Outrage: You Won't BELIEVE Who He's Considering for Fannie CEO
More DeMarco Outrage: You Won't BELIEVE Who He's Considering for Fannie CEO
(all emphases my own_Bill USA)
As we wrote last week, DeMarco is single-handedly blocking relief for millions of struggling homeowners and is using deception to justify his actions. He refuses to allow Fannie Mae and Freddie Mac, the two government-sponsored enterprises he now directs, to reduce principal or even interest rates. Some underwater homeowners are paying as much as 7 percent interest, while loans are now available at 4.3 percent.
DeMarco deceived lawmakers by suggesting it would cost $100 billion to write down mortgage principal while, as we wrote last week, his own agency's estimates show that it would probably save more than $28 billion.
It gets worse. Even in the days since we taped this interview the DeMarco train has continued to ride the housing market off the rails. An academic has studied DeMarco's insistence on increasing the Fannie/Freddie financial portfolio - which he says has no bearing on his refusal to do more to help homeowners - and has concluded that [font size='3']"there is a very significant conflict of interest"[/font] which DeMarco and others have understated.
[font size="3"]DeMarco's team has invested roughly $5 billion of Freddie Mac's $650 billion in "reverse floaters" which are essentially bets that the homeowners who aren't being helped by DeMarco's team will never get helped.[/font] That conflict of interest is actually understated, said Christopher Mayer of Columbia Business School, because these "floaters" are derivatives which link back to $26 to $30 billion in mortgages. That makes the amount of mortgage loans subject to this conflict five to six times what was originally believed.
<more>
(all emphases my own_Bill USA)
As we wrote last week, DeMarco is single-handedly blocking relief for millions of struggling homeowners and is using deception to justify his actions. He refuses to allow Fannie Mae and Freddie Mac, the two government-sponsored enterprises he now directs, to reduce principal or even interest rates. Some underwater homeowners are paying as much as 7 percent interest, while loans are now available at 4.3 percent.
DeMarco deceived lawmakers by suggesting it would cost $100 billion to write down mortgage principal while, as we wrote last week, his own agency's estimates show that it would probably save more than $28 billion.
It gets worse. Even in the days since we taped this interview the DeMarco train has continued to ride the housing market off the rails. An academic has studied DeMarco's insistence on increasing the Fannie/Freddie financial portfolio - which he says has no bearing on his refusal to do more to help homeowners - and has concluded that [font size='3']"there is a very significant conflict of interest"[/font] which DeMarco and others have understated.
[font size="3"]DeMarco's team has invested roughly $5 billion of Freddie Mac's $650 billion in "reverse floaters" which are essentially bets that the homeowners who aren't being helped by DeMarco's team will never get helped.[/font] That conflict of interest is actually understated, said Christopher Mayer of Columbia Business School, because these "floaters" are derivatives which link back to $26 to $30 billion in mortgages. That makes the amount of mortgage loans subject to this conflict five to six times what was originally believed.
<more>
Tell President Obama: Time For DeMarco To Go
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Edward DeMarco - vampire
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TAKE ACTION
We, along with groups ranging from the Progressive Caucus to the Mortgage Bankers Association, asked housing finance overseer Edward DeMarco to help millions of underwater homeowners by reducing their mortgage principal. But he won't listen. So it's time for President Obama to tell DeMarco, "You're fired!"
Tell President Obama to Fire DeMarco - Petition
