First, Bank of America issues a public pronouncement that it won't be selling many loans to Fannie Mae in the future, and instead of just shrugging it off and concentrating on ways to plug the gaping hole of taxpayer funds that are gushing out its backside, Fannie Mae feels compelled to respond like a pre-high schooler: "I broke up with you before you broke up with me!"
Last week, BofA disclosed it would no longer sell certain mortgages to Fannie Mae. The bank said a disagreement arose from a new mortgage repurchase policy with the GSE, which centered around mortgage insurance policies.
Fannie now tells HousingWire that abnormally long delays of repurchase claims at BofA brought into question whether the bank is acting in good faith to resolve toxic loans written by it and Countrywide, which was acquired in 2008. After some time, Fannie said it had to act.
"We were the one that decided not to renew the lender agreement," Fannie CFO Susan McFarland said in an interview with HousingWire Tuesday. "There was a precipitous drop in BofA's ability to appropriately resolve repurchase requests in a timely manner."
Susan then stuck out her tongue, whirled around, and stomped off.
The giant black hole of loss just announced that it lost a whopping $2.4 billion in the fourth quarter and wants the US taxpayer to cough up another $4.6 billion. I can see why they're desperate to collect as much as they can from everyone's (and by "everyone," we include ourselves) favorite whipping boy in the way of loan repurchases (apparently on the theory that if a loan goes bad, you can't simply blame it on the economy if someone forgot to date an employment verification form). Still, there's something unseemly about feeling compelled to engage in a pisssy little cat fight when you're a cat tied in a burlap sack, and your cheesed-off owner is about to drop you off Niagara Falls.
You'd think that your attention might be better focused elsewhere.
Then again, you'd think ours would be, as well.