Housing

Washington Post Investigation: Fannie And Freddie Knew Of Dangers

For_sale_signThe Washington Post once again did what it does so well. It uncovered some nasty documents, in this case about Fannie Mae (FNM) and Freddie Mac (FRE).

“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.”

It is likely that no one did anything about its because both the companies and their managements were making so much money. It was ever thus.

Douglas A. McIntyre

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.