Lawsuits. They close them down and then no money goes to refund people defrauded? The Repugs are always yelling "FANNIE & FREDDIE" because it takes the heat off the fraud they didn't fix or re-regulate after the 07/08 housing meltdown.
Although I've read it wasn't F&F's lending practices at the beginning that caused it but them having to compete with the Big Banks who were loosening regulations on who could qualify. IOWD's they got caught in the tail end as "Everyone is Doing it and You Need to do it TOO" when it was the GOVT. REGULATORS who are at fault for all of this and the Investment Banks that were slicing and dicing and selling off the pieces to investors all over the world.
The whole thing is so disgusting and I was into reading about it all the time for years ...and finally I figured out nothing was going to be done about all the people who got stung in this. And..that the programs Obama put in really weren't enough to help many people because of the difficulty in people even trying to get ahold of the documents for their ownership of their homes because the banks sold them to other banks and then investment banks bought them out. So one couldn't even prove they owned the house. All those horror stories of rip offs while so little was done.
Good luck if this info helps you out ...I think you had worked to save your house and really had to get into all this researching documents and going back and forth with your bank for years. Was that you?
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