Bought Quote by Charles Duhigg
“Fannie Mae has traditionally only bought and sold mortgages. But when a loan held by the company goes into foreclosure, Fannie Mae gains ownership of the underlying property until it is resold to new investors.”
About This Quote
Source Book: The Power of Habit by Charles Duhigg, 2012
When a mortgage defaults, the lender ends up owning the property, turning a loss into a tradable asset.
In simple terms: Foreclosure transfers property ownership to the lender, who can then sell it.
Key Takeaway
Leverage distressed assets for profit.
Themes
finance
real estate
risk management
Mood
analytical
pragmatic
Type
financial
strategic
When to use this quote
- mortgage servicing
- banking
- real estate investment
- portfolio diversification
Key Concepts
Asset liquidation
property ownership
investment cycles
Questions to Reflect On
- How can lenders balance profit with community impact?
- What safeguards prevent excessive speculation?
A Different Perspective
Requires accurate valuation and market demand to avoid holding costs.
