Update: Windy City and Windy Lawmakers

On the theme of "The Beat(ing) Goes On," we note the following:

First, the FHFA, parent of insolvent Fannie Mae and Freddie Mac, continues to slug it out with the City of Chicago over that city's requirement that lenders who have not yet foreclosed on vacant homes are nevertheless responsible for registering with the city, paying a fee, and maintaining the property (or facing fines). Freddie this week started requiring servicers of loans subject to the law to pay the fees under protest or not be reimbursed. As reported by Housing Wire, the effect of this battle is to slow down the already glacial pace of foreclosures and OREO disposition in the city. As to pro-consumer types who think that's a good thing, I remind you that if you're a taxpayer, it's not a good thing. As anyone who hasn't lived in a cave for the last few years understands, the American taxpayers are stuck with the tab for losses at Fannie Mae and Freddie Mac. If you're not a taxpayer, then it's a problem for the rest of working stiffs.

On another matter, Congressman Darrell Issa has apparently uncovered documents that directly link former Countrywide founder Angelo ("The Tan Man") Mazilo to the "Friends of Angelo" loan program that benefited members of Congress with favorable home loan terms.

Issa is working with Mozilo's attorneys at Irell & Manella to schedule questioning over the program, according to a letter provided to HousingWire. Since 2008, Issa pushed the Committee on Oversight and Government Reform to investigate the "Friends of Angelo" Countrywide program and uncover which lawmakers allegedly received heavily discounted mortgages in return for access.

[...]

"Documents obtained by the committee show that former Countrywide Chief Executive Officer Angelo Mozilo personally referred government officials and other individuals positioned to benefit the company into the VIP program, known internally as 'Friends of Angelo,'" according to the letter.

As we noted a couple of months ago, this is incredibly old news that, based on the complete lack of ethics sanctions so far, is unlikely to to lead anywhere other than to a pile of political hay in an election year.

Certainly, we expect an ethics committee than ran off the rails trying to investigate Maxine Waters' more obviously questionable activities to wake up and look deeply into whether, six years ago, four House members got their discount points waived or an interest rate that even Warren Buffet couldn't garner. Of course, we also expect Bill Clinton to swear off sex and enter a Franciscan friary next week.

We note that Clinton is still nowhere near any Franciscan friars.