The House has issued subpoenas for CFPB officials, debate continues on winding down Fannie and Freddie, and a Chicago Mansion is on sale at a bargain-basement price -- but it may be haunted.
Video transcript below:
Happy Friday everyone. I am Ryan Smith. This is MPA’s weekly update. A house sub committee has supported issues of subpoenas to officials from the Consumer Financial Protection Bureau as part of a continuing investigation into charges of discrimination at the agency. The House Financial Services committee's oversight panel is investigating the charges after CFPB Attorney Angela Martin accused the agency of gender bias and an independent investigator reported the chief had a culture discrimination and retaliation at the agency. The CFPB had refused to allow officials to testify prompting the subpoenas. Martin has testified before the subcommittee that she filed complaints against the agency for discrimination and retaliation last year after a fellow employee discriminated against her and her supervisor retaliated against her for reporting it. She also testified that after filing the complaint she received a phone call from CFPB director Richard Cordray who told her to “back down”.
A Senate panel this week continued debating a bill that would replace Fannie Mae and Freddie Mac with a new federal mortgage insurer and move more of the risk to private capital. A recent amendment to the bill specifies that it won’t supercede court rulings that force Fannie and Freddie to send all their profits to the Treasury, a move that could invoke many big investors who snapped up shares of the companies in 2008 when they were teetering on the brink of insolvency. The investors stand to make a tidy profit if Fannie and Freddie are ever returned to private ownership and some of those hedge funds are now suing the government challenging the current arrangement which requires Fannie and Freddie to send all their profits back to the Treasury.
Well if you're looking for a good deal on a house, a Chicago mansion has come on the market for an almost shockingly low price. The red brick mansion built in 1882 is for sale at only $159,000, but there's a catch, it might be haunted. Now the real estate agent selling the house says that she brought in an energy reader who assures that the house isn't haunted. However the mansion has something of a dark history. A 19-year-old man was shot to death at a party there in 2004 and in 2007 a John Wilkes Booth impersonator who bought the house died there suddenly. After wondering what possible market there could be a John Wilkes Booth impersonator you just have to use your imagination.
Fixed mortgage rates fell this week on weaker-than-expected real GDP estimates. The 30 year fixed rate mortgage averaged 4.29% this week, down from last week’s average of 4.33%, the five-year adjustable-rate mortgage was up rising to an average of 3.05% from last week's average of 3.03% and the 1-year ARM averaged 2.45% this week up from last week's average of 2.44%. For MPA, I'm Ryan Smith, have a great weekend.