Freddie Mac last month said it would stop making risky bets against homeowners after concerns were raised by its regulator, the Federal Housing Finance Agency. The statement by the FHFA was issued in response to an investigation by NPR and ProPublica that disclosed how Freddie Mac bought billions of dollars in securities that turned a profit if homeowners remained stuck in high rate mortgages. The White House said the Treasury Department is looking into Freddie Mac's investments. Steve Inskeep talks with NPR's Chris Arnold and Jesse Eisinger of ProPublica about their report.
Freddie Mac is a gatekeeper in the mortgage market. In many cases, the taxpayer-owned mortgage company controls who qualifies to refinance a mortgage and who doesn't. Well, NPR has learned that Freddie Mac has been making financial wagers, betting against American homeowners being able to refinance. And now some lawmakers want to put a stop to it. NPR's Chris Arnold has been reporting this story in partnership with ProPublica.org. He has this report.
Freddie Mac, a taxpayer-owned mortgage company, is supposed to make homeownership easier. One thing that makes owning a home more affordable is getting a cheaper mortgage.
But Freddie Mac has invested billions of dollars betting that U.S. homeowners won't be able to refinance their mortgages at today's lower rates, according to an investigation by NPR and ProPublica, an independent, nonprofit newsroom.