Selected writings by David Fiderer
First published in National Mortgage News on November 13, 2015
Fannie Mae and Freddie Mac are irredeemable failures, which must be abolished as the first step in any type of housing finance reform — if current and former officials of the U.S. Department of the Treasury are to be believed.
Going back to Timothy Geithner’s tenure as Secretary of the Treasury, and continuing to present day, Michael Stegman and his peers are long overdue for a reality check. A few basic rules of mortgage lending, accrual accounting and capitalism go a long way toward debunking Treasury’s assertions.
Every financial services executive knows that loan loss provisions are subject to change. He draws keen distinctions between accounting provisions and cash losses, between solvency and liquidity. He never forgets that a mortgage lender’s business model is all about getting the principal back plus interest and fees.
President Obama’s Treasury Department chooses to ignore those criteria. To continue, go to National Mortgage News.