The Washington Post has this
In a memo to former Freddie chief executive Richard F. Syron and other top executives, former Freddie chief enterprise risk officer David Andrukonis wrote that the company was buying mortgages that appear "to target borrowers who would have trouble qualifying for a mortgage if their financial position were adequately disclosed."
Andrukonis warned that these mortgages could be particularly harmful for Hispanic borrowers, and they could lead to loans being made to people who would be unlikely to pay them off. "The potential for the perception and the reality of predatory lending with this product is great," Andrukonis wrote.
The documents, which the committee has not yet released but were obtained by The Washington Post, show that Fannie and Freddie, two linchpins of the nation's mortgage market, continued to push into new, risky markets despite internal debate over whether the efforts were prudent. . . .
Labels: bailout, mortgagecrisis