Sen. Elizabeth Warren (D-MA) has taken aim at the Trump administration for failing to question Rocket Companies’ (NYSE: RKT) recent acquisition announcements and for seeking to privatize Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCQB: FMCC).
Reuters reports Warren and several Senate Democrats (D-NJ) sent a letter to the US Department of Justice and the Federal Trade Commission regarding Rocket’s plans to acquire Redfin (NASDAQ: RDFN) and Mr. Cooper (NYSE: COOP). The senators questioned why the federal agencies were not investigating these acquisitions, arguing that Rocket could raise costs for homebuyers.
“These deals would combine the second-largest mortgage originator, the largest mortgage servicer, and the third-most-visited real estate brokerage website in the United States, into a massive, vertically integrated conglomerate that may reduce choice and raise prices for American families in the housing market,” the lawmakers said.
Separately, TheHill.com reports Warren led another group of Senate Democrats calling on Federal Housing Finance Agency Director Bill Pulte to cease all efforts to privatize the government-sponsored enterprises.
“We have serious concerns that you plan to make significant changes to the enterprises in a way that would put investor profits over the homes of millions of Americans,” the lawmakers wrote. “Should President Trump make good on his plans, he may take us back to the status quo before the 2008 foreclosure crisis.”
Pulte was asked to “halt any plans to reprivatize the enterprises until you have adequately assessed the potential impact of y our plans on the housing market.” They also asked the director for details on his meetings with the Trump administration on the issue.
“Despite your statutory role as regulator and conservator of the enterprises, you recently stated that President Trump will ‘eventually make whatever decision that he wants to make, on his own timeline.’ It is incredibly concerning that you appear to be conceding your responsibility to ensure the safety and soundness of the enterprises to advance the president’s political agenda,” the letter stated.
Photo: Gage Skidmore / Flickr Creative Commons
The Senator may be pretending to be Heap Big Mad over this but she has absolutely no Credibility.
Later today she will claim there is no problem at all in Los Angeles.
First she praises a Co. Then takes the praise away. Indian Giver.
It is very dangerous to allow for one company to have more than 80% of the mortgage market.CONSUMER’S NEED PROTECTIONS and CHOICES and should be able to shop around for the best interest rate. Having few lender controlling the mortgage market will hurt not just consumer’s but the entire lending industry. “This is how monopolies are born”
During 47 years as a Realtor, I had the misfortune of dealing with Mr. Cooper after they purchased an existing mortgage. They may not have been the most inept and incompetent organization I have ever dealt with, but they certainly rank in the top five. Not a bonus for the industry to have them in (even partially) in control of the majority of residential mortgages.
This idea coupled with a major builder in charge of housing decisions for all residentials smells more like a power grab than improving things for home owners.
I find it interesting that Rocket Mortgage had several lawsuits filed against them for overcharging fees to borrowers but when the current administration took the power away from the Consumer Protection Bureau earlier this year, the lawsuits were dropped and their stock went up – where does the consumer go now?