Freddie Mac Bet on Homeowners' Misery, Report Says

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freddie macFreddie Mac, the taxpayer-owned mortgage giant, has placed multibillion-dollar bets that pay off if homeowners stay trapped in expensive mortgages with interest rates well above current rates.

Freddie began increasing these bets dramatically in late 2010, the same time that the company was making it harder for homeowners to get out of such high-interest mortgages.

Read the full story by ProPublica and NPR here.

Also see:
Freddie Mac Paid Gingrich Group $25,000 a Month
States Mull $25 Billion Mortgage Settlement With Big Banks

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