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Assessing What Will Now Happen to Fannie Mae
by Stephen Labation with Gretchen Morgenson
See: link

The Big AVM Lie - Autmated Valuation Models (AVMs)
by Steve Keohane, USN (Ret)
See: link

Future of Fannie Mae Executives Unclear
by AP's Marcy Gordon
See: link

EDITOR'S COMMENTS
by Ole Bear

Nine Billion Bucks Buys a Lot of Fudge

Nine Billion Bucks is a lot of money of money to lose in anyone's candy factory. From the NY Times link shown above:

Over the last three years, Mr. Raines has made $14 million in salary
and bonus and has taken home $25.6 million in incentive pay. As
of the end of last year, he held options on 1.9 million shares of
Fannie Mae stock, valued at almost $12 million. Fannie Mae also
paid almost $200,000 for Mr. Raines's use of company transportation
in 2003. 

Nice job if you can get it. However, keeping it might be the Trojan Horse of a different color? Fannie Mae has one of the strongest lobbying groups on the Planet on Capital Hill and elsewhere. They also have a lot of connections in the realty valuation industry through their network of Goons and Storm Troopers they control and manipulate in appraisal management companies and elsewhere, including the habitual revising and weakening of realty valuation standards of professional practice. They have been very effective and instrumental in cramming the AVM [Alternative Valuation Model] for realty loan securitization on the realty valuation community. In fact, a SRA buddy of mine, David, from the St. Louis Chapter of the Appraisal Institute, just told me last week that at a recent seminar, an instructor from Guess Who told the group attending the seminar in Typical Delphi Scam and Cognitive Dissonance fashion, that appraisers would go out of business if they refused to perform AVMs for the banking cartel and the GSEs. Sending the Appraisal Institute $950 Bucks in MAI, SRPA, SRA professional dues for 2005 is going to be a really tough decision. If I can find a real job that pays, they won't get my money anymore. Besides being a State Certified General Realty Appraiser is just as good as having Made As Instructed behind my name -- because that's what the public perceives me to be anyway now -- a member of the world's oldest profession.

What's even worse, we suspect that the quality of all those securitized loans all the GSEs have been peddling to investors since 1995 [which co-incidentally pretty much corresponds with the Big Boys intervening in the price of heavy metal, should the price rise, See: www.gata.org for Gold Derivative Banking Crisis] is suspect. We are keeping our eye on Rhinestone Cowboy Sporkin sent to keep all the dead cats in the bag at Fannie Mae. We suspect, given the lack of transparency at the GSEs, that LTCM, Enron, World Com, and Arthur Anderson will look like mere peanuts at lost shareholder value, if dead cats are let out of the bag and thrown on the table for everyone to see. Of course dead cats on the table, may make for investors leaving these stocks faster than a illegitimate passel of scalded cats. Hey, when you are the Top Kat making this kind of mega bucks, there are some tiny risks, aren't there? We are pondering just how many of his nine lives, Top Kat has already used up?

If any formal charges are ever made in court regarding the corporate leaders of the GSEs, I would also suggest an additional count -- the destruction of the realty valuation industry and professional. AVM and Drive By Appraisal, Anyone? Twenty Bucks dudn't buy much anymore, but you get what you are willing to pay for!

Ole Bear, Editor

© 2004 Realty Reality