| Obama to Create New Freddie and Fannie; Uh - Oh | |
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| Tweet Topic Started: Sep 7 2011, 06:27 PM (191 Views) | |
| Mason | Sep 7 2011, 06:27 PM Post #1 |
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. I thought this should have its own thread. Obama wants to create a New Freddie and Fannie - laundering that name and creating a Fed Home bank where he can orchestrate Gov't Home shenanigans. This may be the best argument the man is trying to sink the ship. All the Evidence is in that Fannie and Freddie were colossal failures and Taxpayers are on the hook for the Engineeering of Free giveaways in the name of minority ownership. There is absolutely no reason for the Feds to increase the liabilities of the Taxpayers in Gov't home ownership in this country. Edited by Mason, Sep 7 2011, 06:37 PM.
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| kbp | Sep 7 2011, 07:16 PM Post #2 |
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I thought something was going on there! You have to realize that the original idea of Fannie & Freddie is still a benefit to the people that I doubt more than a handful of politicians will condemn. The purpose is for it to locate investors to purchase the mortgages and free up money for use at the local level; keep the local sources with enough capital on hand to write mortages for the local buyers and help Americans buy homes with reasonable interest rates. Even the Grinch won't destroy such a program like that. Now, we all know the politicians can screw up even a good thing! |
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| kbp | Sep 7 2011, 07:19 PM Post #3 |
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Think "recovery"! The housing market has led us out of more slow economies than any other market we have. At least some cure for the problem would eliminate the drag it has on us now. |
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| Mason | Sep 8 2011, 08:18 AM Post #4 |
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. Some are saying that he is paying for all this with Future cuts - Cuts TBD. Sound Familiar? You gotta be kiddin' me. cmao (c = cry) . Edited by Mason, Sep 8 2011, 08:19 AM.
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| kbp | Sep 8 2011, 10:14 AM Post #5 |
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I haven't been able to figure out where the unlimited funds are coming from to keep Fannie going. I suspect they reluctantly write off projected losses, then must somehow budget to cover that. They may offset it with projected income off the mortgages they hold. It probably still leaves a budget hole to cover, but that may less than $100 billion the way they plan with the accounting. The idea of a new, government owned Fannie would allow them to hide the costs better than the old system of having to supply money to the PRIVATE operations ...and Obama seems to be building more government banking systems anyway. I also anticipate that holding foreclosed properties is a major negative cash flow they MUST resolve before and solutions come about. Edited by kbp, Sep 8 2011, 10:15 AM.
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| kbp | Sep 8 2011, 07:57 PM Post #6 |
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Slightly OT...
I've seen this idea floated elsewhere lately. Not sure it will happen. Just pointing it out because of what it could do to the mortage market, should ammortizations stretch out to, say, 40 year. I used to be able to get better rates with >20% down, then along came all the secured mortgages and people were getting the same rates with <5% down. The worry of a market change or foreclosure on a run down property within the first 10 years disappeared. If the government pushed some Fannie type entity to secure or even write mortgages for 40 year periods, at a reasonable rate, the reduction in house payments would certainly leave households with more to spend elsewhere. That would not surprise me, were it to happen. Obama had a few lines tonight about working to get everybody on that "just about 4%" rate mortgages. |
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