"When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.” Theodore Roosevelt
For those of you who might have missed this Memorandum and Order out of Rhode Island (whose courts typically favor the banks and their servicers), you may wish to read this 19-page ruling:
Sisti v FHFA et al, US D. R.I. No 17-005 (Aug 2, 2018)
The FHFA attempted to get a judgment on the pleadings, which the court denied! While this isn’t much of a setback, it does make clear a few potential misconceptions about Fannie Mae, Freddie Mac, the FHFA, the FDIC and the mortgage loan servicers who deal with these entities:
THE BUCK STOPS WHERE?
(1) Following the subprime mortgage crisis, Congress passed the Housing and Economic Recovery Act, which created the FHFA (Federal Housing Finance Agency), giving it the power to supervise and regulate Fannie Mae and Freddie Mac (the government-sponsored entities, or GSEs). The FHFA pretty much has complete control over the activities of both GSEs, including their reorganization or rehabilitation. In the fall of 2008, the director of the FHFA placed both GSEs into a CONSERVATORSHIP, NOT A RECEIVERSHIP! The Director of the FHFA had a choice … he chose Conservatorship!
(2) There is no date set for when this conservatorship will end. In the meantime, both GSEs are prohibited from paying any dividends to their common shareholders.
(3) The U.S. Government owns ALL of the senior preferred stock of BOTH GSEs. As a result, the U.S. Government gets perks that common stockholders don’t get.
(4) Both GSEs have received over $187-billion from the U.S. Treasury to maintain liquidity and have paid more than $249-billion in dividends back into the Treasury; however, the U.S. Government’s interest in the GSEs has not been diminished as a result.
HOMEOWNERS GOT SCREWED … AND SUED!
I will find out more and let you know here and on our YouTube Channel @mtgfrd
We are also setting up a Telegram Posting site.
WE ARE TRYING TO START AN ASSOCIATION OF FORECLOSED BORROWERS AND HOPEFULLY RAISE MONEY FOR BORROWERS WHO HAVE SPENT WAY MORE MONEY TRYING TO FIGHT FORECLOSURES THAN SHOULD HAVE BEEN NECESSARY IN A REAL DEMOCRACY.
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Danny Hammond of the 3/4 Court Press
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