Report: Fannie, Freddie Execs Were Warned Of Loan Problems Years Ago
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Bailout Outrage, Fannie Mae, Fannie Mae Bailout, Fannie Mae Loans, Fannie Mae Warnings, Freddie Mac, Freddie Mac Bailout, Freddie Mac Loans, Freddie Mac Mortgage Crisis,
Business News
Washington Post:
Internal Freddie Mac documents show that senior executives at the company were warned years ago that they were offering mortgages that could pose dangers to the firm, hurt borrowers and generate more risky loans throughout the industry.
At Fannie Mae, top executives were told it was necessary to develop "underground" efforts to buy subprime mortgages because of competitive pressures, although there were growing risks and borrowers often didn't understand the terms of the loans, documents show.
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First Posted: 12- 9-08 10:11 AM | Updated: 03-25-09 02:07 PM