Tumblr Icon RSS Icon

Freddie Mac Is Betting Against Homeowners Getting Out Of Expensive Mortgages

Posted on  

"Freddie Mac Is Betting Against Homeowners Getting Out Of Expensive Mortgages"

Share:

google plus icon

NPR and Propublica reported today that the government-backed mortgage giant Freddie Mac is making it harder for troubled homeowners to get out of high interest rate mortgages, while at the same time placing “multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages.” “We were actually shocked they did this,” says Scott Simon, who works for the bond trading firm PIMCO. The trades “put them squarely against the homeowner,” Simon said. Freddie Mac claims its traders are walled off from the rest of the company so that no coordination could have taken place.

Tags:

« »

By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.