Freddie Mac Reviewing Support to Potential Predatory Lender. Freddie Mac is looking into a loan it guaranteed as part of an affordable single-family rental pilot program. This comes after a housing advocacy group filed a lawsuit in federal court in April that argued an investor in Indianapolis was selling rental homes through a rent-to-own arrangement that is supposed to be excluded from the program. Casas Barata Aqui allegedly targets Latino buyers and is in violation of the Fair Housing Act. The group received financing that was a part of loans issued by CoreVest Finance. Fannie Promotes Chief Risk Officer. Fannie Mae recently promoted Kimberly Johnson from chief risk officer to executive vice president and chief operating officer.
A former Fannie executive (pre-federal takeover) said that when he worked at the GSE, “We looked at doing this, but were told it wasn’t in the charter and so we didn’t proceed.”
Freddie Mac recently extended a line of credit to an unidentified nonbank seller/servicer, setting off a mini debate about charter creep – and why its regulator approved the initiative in the first place.
A top official at Arch Capital defended Freddie Mac’s new Integrated Mortgage Insurance (IMAGIN) credit-risk transfer program against charges that it creates an unlevel playing field.