Freddie Mac and the Politics of Mortgage Refinancing

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A link from ProPublica

Officials at government-controlled mortgage giant Freddie Mac made it tougher for homeowners to refinance mortgages with high interest rates because of concern it could cut into profits at the company, which was bailed out by taxpayers in 2008 and remains under government control. In private meetings, Republican-leaning agency board members and at least one executive also resisted a mass refi policy for an additional reason: They viewed it as a boost to the economy. This report from ProPublica’s Jesse Eisinger underscores how heavily politicized the once-sleepy issue of US housing finance has become in the wake of the financial crisis.