Home loan transferred to Freddie Mac -- What does this mean?
I got a letter saying that my mortgage loan was "sold to Freddie Mac or to Freddie Mac as a trustee." Other interesting wording is that "the transfer of ownership. has not been publicly recorded."
What does this mean? Are there any gotchas that I should be aware of?
After doing some internet research, I came across the following. These comments and articles probably should be taken with a grain of salt, but seem to point out interesting issues in the broader scope of things. Do I need to worry about any of this?
I am in the same boat and has spent numerous hours on the phone. What I found out is very sad. Round Point, FDIC and FHA are on one side (A). Freddie Mac and CENLAR are on the other (B). My recently closed loan was supposely sold by TBW to Freddie Mac. The letter I got from Freddie Mac said the transfer of ownership of my mortgage loan "has not been publicly recorded". With the shut down of TBW. FDIC steps in. At this point, all the A side (FDIC) wants is to have Freddie Mac show a legal proof that Freddie Mac really owns my loan. But what I got from Freddie Mac was we are Freddie Mac, we do not need to prove anything to any one. Meanwhile I wonder if the letter I was promised can be consider a "legal" proof. Round Point customer service supervisor told me that once FDIC has a proof that Freddie Mac owns my loan, then Round Point will drop off the scene.
We tax payers spent BILLIONs bailing Freddie Mac out. It is an outrage that Freddie Mac won't even show the decency to help us out when it is Freddie Mac who created this mess.
They [Fannie Mae] just hold and own all the loans and take full responsibility for them, but they don't do the initial paperwork. First, where in the world does Fannie Mae get its money? They are trillions in debt, and are losing billions, so how can they do this? Does anyone dare to guess?
The bank. not only got paid up front to do the loan, but also gets paid by Fannie Mae for the life of the loan to service it. All this takes place without any risk of default whatsoever to the bank. In essence, they handle the paperwork, get paid up front, and continue to get paid for the life of the loan, and the particular loan is off their books immediately. Their reserve requirements are never altered, and all risk is eliminated and transferred to Fannie Mae. This is in essence simply a transfer of risk to us lowly taxpayers.
. The banking system is using taxpayer monies delivered to them by the government through Fannie Mae and Freddie Mac, to make and service loans that carry no risk to them, but puts a great burden of risk on the citizenry. [B]anks will look healthier than they really are and continue to pass off all risk, the losses and debt at Fannie Mae and Freddie Mac will be mostly hidden from the public, and the real estate markets will appear to be better off than is actually the case.