CBS News did an in-depth report on the Friends of Angelo program at Countrywide last week

Hell froze over and I didn’t even get a wake up call.

Again, Conrad got a residential loan on a commercial property. It’s beside the point that Fannie/Freddie does these loans. They would never buy an eight unit if that unit was backed by a residential loan unless that was done fraudulently.

mike volpe on August 3, 2009 at 2:50 PM

Not trying to be a smartass, but it took me about a minute to find this:

Fannie Mae multifamily loan guidelines

Clearly says a multifamily loan is over 5 units.

One of the things Fannie’s opponents used to rag on all the time was how it bought a lot of multifamily loans to fulfill it affordable hosing goals, which were clearly intended to spur homeownership for low- and moderate-income families. It’s had a pretty sizable multifamily business for many years, and I’m sure a lot of it was done through Countrywide before CW blew up.

As for my industry bona fides, I’ve worked in the mortgage industry for 14 years, and I know the Countrywide lobbyists whose names are on those emails. I’m VERY familiar with their lobbying operation, as well as Fannie Mae’s. One of my best friends had the job at Fannie to twist the arms of their customers and all the industry associations to oppose any GSE reform legislation. I once represented Freddie Mac’s largest customer, and another close friend of mine heads Freddie’s multifamily business.

I know way more than enough to be dangerous. In fact, I am writing a book about this whole mess because I know more about it than almost anyone. I even know about Barney Frank’s boyfriend and how he got his job at Fannie Mae.

Mike Volpe: You are correct, these are “commercial” loans (see my posting above under “lovedinthekeys”, where I emphasized the language in the pamphlet we received from the lender describing FNMA’s involvement in “commercial loans” for multifamily residential units. While the units may be residential in nature, the form of the loan is NOT residential, it is commercial. My non-profit built a 16 unit apartment complex and we were considered multifamily by the bank, but the FNMA rider we had to sign for the loan listed it as COMMERCIAL.

lovedinthekeys on August 3, 2009 at 3:00 PM

In addition, a few years back Fannie changed their language, dropping the term “multi-family” and replacing it with “multi-unit”.

They also wanted to eliminate the term “Master Bedroom”, believe it or not, but that never happened.

Why are Democrats blocking inquiries into Friends of Angelo program?

We Won!

Running a non profit doesn’t make you an expert in Fannie/Freddie. Multi units, as defined by HUD, are two, three and four units. They aren’t eight units. Those are commercial properties.

Mike Volpe: You are correct, these are “commercial” loans (see my posting above under “lovedinthekeys”, where I emphasized the language in the pamphlet we received from the lender describing FNMA’s involvement in “commercial loans” for multifamily residential units. While the units may be residential in nature, the form of the loan is NOT residential, it is commercial. My non-profit built a 16 unit apartment complex and we were considered multifamily by the bank, but the FNMA rider we had to sign for the loan listed it as COMMERCIAL.

That shouldn’t be minimized but maximized. This is downright fraud. If it was then sold as such to Fannie/Freddie, it’s even greater fraud. Such a property would have a totally different loan structure. It would have a pre pay, a balloon, it would be several percentage points higher, and it would have a rate that adjusted. Conrad got something entirely different.

I don’t know that Fannie ever dealt in commercial

I run a non-profit homebuilding organization. We were encouraged by the American Dream Act (and the various financing methods offered by FNMA) to “get people into homes”. While we wanted to help people get their own home, our concern was that they would be able to afford to keep it.

Although many lenders softened their standards such as the 30% cost to income ratio, and would gave our applicants a mortgage, we believed that if their expenses exceeded 32% (including utilities) of their income, they would be too cost burdened. By taking this approach, we have had NO defaults. Frankly, we took the stand that some people just cannot afford homeownership, including taxes, insurance, maintenance, etc., in addition to utilities and daily living expenses.

As to your question regarding FNMA: The following is from a pamphlet given to us by a lender. (emphasis, mine)

“Fannie and Freddie are both private companies designed to promote home ownership for low and medium class families. Neither company makes loans directly to borrowers; rather, they rather buy mortgages from the commercial banks, insurance companies and credit unions that originate them, providing a continuous influx of capital to those institutions. This capital can then be used to originate new mortgages. Like the FHA, the main focus of Fannie Mae and Freddie Mac is the residential market, but their activities bleed over into the commercial real estate realm through their involvement in multifamily residential properties such as apartments and condos.”

Wait — didn’t the Democrats say that they wanted to get to the bottom of the financial crisis and the meltdown of the housing bubble that caused it?

Yes. And OJ said he was looking for the real killer.

Also, I noticed on the tele a couple days ago that Michelle O’s smile is losing some of it’s glitter

What, her shark grin is more menacing than usual?

Look into her eyes, there is some serious hatred and contempt in those orbs.

Which Democrats are blocking the subpoenas?

Errr, Errr (yes, I am from the south)…let me think – that’s a tough one, Ed… could it be Pelosi, Reid, Obama, Holder? Nah, after all they are the most transparent Congress, evah! /sarc

with all due respect, you know what I would refer to as “just enough to be dangerous”.

An 8 unit is a commercial property. A multi familyproperty is a two, three or four unit and that’s according to HUD. The important thing here is not that it is a multi unit but that it is a commercial property. If your property is a four units or less, it is a residential property. That gets a residential loan. Anything more than that is a commercial loan. That’s what this property was and it should have gotten a commercial loan. I don’t know that Fannie ever dealt in commercial but if they did the loans tied to them would have been commercial loans. In this case, the loan was a residential loan. The two loans are totally different. Fannie would NOT buy this loan on this property unless someone was totally ceding their fiduciary responsibility.

You are speaking in nonsense. He was given a residential loan for a commercial property. That is just fraud. There are no two ways about it. If that loan was subsequently sold, that’s even more fraud.

Obama has his own questionable (totally sleazy) real estate deal.
TXMomof3 on August 3, 2009 at 12:43 PM

Everything he and his people touch turns out to be tainted with something questionable. Also, I noticed on the tele a couple days ago that Michelle O’s smile is losing some of it’s glitter. Could be all this is taking its toll. The Gates thing may just have been some kind of turning point?