Mortgage Lender Hid Big Risks, Suit Alleges
By James Nash – Columbus Dispatch (23 Jan 2008)
“The giant mortgage financer known as Freddie Mac swindled an Ohio pension system out of as much as $27 million by concealing its heavy investments in the battered subprime lending industry, Attorney General Marc Dann alleges in a lawsuit.
Dann said the Federal Home Loan Mortgage Corp. “secretly and intentionally participated in one of the largest housing investment deceptions in modern U.S. economic times.”
The lawsuit, filed Friday in federal court in Youngstown, alleges that Freddie Mac downplayed its investments in subprime lenders before its stock nosedived in November on news that it lost $2 billion in the third quarter, largely because of the collapse in the subprime market.”
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