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FHFA gets into the title business
In the world of finance and bureaucracy, even the most well-intentioned programs can sometimes take a comical twist. Enter the Federal Housing Finance Agency (FHFA) and their pilot program that grants waivers on title insurance requirements for loans sold to Fannie Mae. Are they truly looking out for under-served communities and low-income borrowers, or is this just another case of favoritism among friends? Let’s take a lighthearted look at the situation and see if we can find some humor amidst the confusion.
Who knew that title insurance could be so expensive and seldom used? Well, apparently the FHFA did, and they decided to address this issue by eliminating it altogether. After all, what better way to bring back affordability than removing an extra layer of protection? It’s like saying, “Hey, we’re saving you money by not giving you a safety net. You’re welcome!”
So, let’s get this straight: without title insurance, borrowers are left exposed to potential risks that may arise after their property’s title is recorded. But hey, who needs coverage for anything that happens post-purchase? It’s like having car insurance that only protects you from accidents that have already occurred.
To make matters even more amusing, the FHFA decided to step into the title insurance business themselves. Who needs experienced and reputable title companies when a government agency can just jump in and take charge, right? It’s like your favorite sitcom character deciding to become a doctor overnight. What could possibly go wrong?
Now, here’s where the plot thickens.
The FHFA chose to partner with a company named Doma, which conveniently happens to be trading as a penny stock and teetering on the edge of bankruptcy. It’s like going on a sinking ship and expecting a life jacket made of tissue paper to keep you afloat. But hey, who needs financial stability when you can have an exciting roller coaster ride instead?
Let’s introduce you to the star-studded cast on Doma’s board. Larry Summers, former Treasury Secretary, Jeffrey Epstein’s good buddy and frequent flyer on the Lolita Express. Karen Richardson, Board Member at British Petroleum. Stuart Miller, Executive Chairman of Lennar Corporation. Charles Moldow, General Partner of Foundation Capital. Maxine Williams, Facebook’s chief diversity officer, and Serena Wolfe the CFO at Annaly Capital Management. A bit of a dream team of connections, ensuring that you’ve covered all your bases when it comes to influence and favors.
As the curtain rises on this farce, we witness Doma’s financial performance taking a nosedive. Their stock, which once danced around the $10 mark, is now desperately clinging to a mere 31 cents. It’s like watching a slapstick comedy routine where everything that can go wrong does go wrong. Cue the dramatic music and comedic sound effects!
Laugh or cry?
In this tragicomedy of title insurance, we’re left wondering if we should laugh or cry. The FHFA’s pilot program, with its questionable choices, humorous justifications, and partnerships with struggling companies, certainly provides ample material for amusement. However, the potential repercussions for taxpayers may dampen the humor a bit. So, while we chuckle at the absurdity of it all, let’s also keep a watchful eye on the consequences and hope that the show ends with a comedic twist that saves the day.