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FHFA could slash Fannie and Freddie loan sizes

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Mortgage Professional America | 10 Sep 2013, 06:21 AM Agree 0
Federal regulators are considering a slashing the size of mortgages that can be backed by Fannie Mae and Freddie Mac, even as Congress considers killing off the mortgage giants
  • Cary Michael | | 10 Sep 2013, 09:34 AM Agree 0
    Makes sense lower the limits as home values rise, idiots!
  • Paulsmoney | | 10 Sep 2013, 10:08 AM Agree 0
    Reduced mortgage amounts is too little too late in the fix Fannie/Freddie quagmire; Kind of like a fiscal tourniquet.

    Building another replacement government agency is at best ineptitude or perhaps arrogance by lawmakers!

    As it is now, the government, through a host of friendly information channels, is misleading the US with regards to housing recovery.
  • Licensed mortgage pro | | 10 Sep 2013, 10:35 AM Agree 0
    It is already to late for adequate advance notice if the mortgage limits are to change lower for January. When they change higher a locked mortgage is not impacted as it would still be under the limit.
  • Greg Cook | | 10 Sep 2013, 10:37 AM Agree 0
    Be careful what you wish for. Getting rid of Fannie and Freddie will make financing more difficult and more expensive.
    Try to get a jumbo mortgage today and you'll see what financing will be without F&F
  • Stan J | | 10 Sep 2013, 10:45 AM Agree 0
    It is about time that limits for market value adjust for the decline. Otherwise, there would be no need for HARP, would there?
    Enough of the taxpayer assisting investors as that is what has been happening all along! The lenders should be willing to shoulder more risk in such a lucrative business.
  • Bayview Mortgage Inc | | 10 Sep 2013, 01:30 PM Agree 0
    I think they should go one step farther and require everyone to broker mortgages unless they use their own funds and hold the paper for 5 to 10 years. this would cut out all the bogus paper on the market.
  • Jana | | 10 Sep 2013, 04:15 PM Agree 0
    @ Bayview Mortgage.... and to whom would you broker said mortgages?!!
  • Bayview Mortgage Inc | | 10 Sep 2013, 07:11 PM Agree 0
    Jana, Business will go on, like it has done. the banks and large lenders would just slowly drop fannie and freddie and force the higher mortgage to value mortgages thru FHA. If you noticed. All the large lenders are starting to hold their own servicing. They are only selling the really low rate mortgages and lower credit score mortgages to the large banks. When rates drop to 3.5% next month. You will see alot of table funding lenders and brokers close down. since they won't be able to cover their service release payback.
  • Jana | | 10 Sep 2013, 07:47 PM Agree 0
    Bayview... your logic and knowledge of the industry escapes me
  • Cary Michael | | 11 Sep 2013, 06:20 AM Agree 0
    Bayview rates to 3.5% NEXT month, perhaps you should do a name change to OPTIMISTICview.

    Exactly what basis do you see for a drop in rates, I assume we are talking 30 Year, by +/- a full point?

    Please make your case.
  • Stan J | | 11 Sep 2013, 08:39 PM Agree 0
    We must wean ourselves from the teats of F&f.
  • Bayview Mortgage Inc. | | 15 Sep 2013, 06:11 PM Agree 0
    I didn't think of that, Mario. They could Make any borrower under 235,000 go to FHA and any borrower over 236,000 go to Freddie and Fannie and then post limits. Thus FHA will serve the purpose it was developed and Freddie and Fannie, its. Also post income requirements. so if someone is making over 75,000 they would have to go to Freddie or Fannie. This would require good rates or the lenders wouldn't be able to write the mortgages. unless they held the paper and by-passed the GSA's.
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