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Hensarling blasts Senate plan for Fannie, Freddie reform

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Mortgage Professional America | 15 May 2014, 12:33 PM Agree 0
A top House Republican is slamming the Senate’s plan to wind down Fannie Mae and Freddie Mac – but the alternative he’s offering has already been opposed by practically every industry group
  • Kharon Palmer | | 20 May 2014, 07:58 PM Agree 1
    The federal gov. Needs to get out of the way of mortgage lending
  • William M. Jacobs | | 26 Sep 2014, 11:48 AM Agree 1
    Both of the GSE's under review for their past practices, have been the backbone of the real estate finance industries for more than 40 years, and FNMA since the 1930's. To abandon all of their accomplishments and support of housing in this country because of their issues over the past several few years (2007-2010), which were caused primarily by the bursting of financial asset values, with its consequent breakdown of property values during that period of time, along with the unrealistic mortgage programs of the middle 2000's like "option arms". Most of which were good programs in the beginning of their use, but were offered to people that didn't understand the ramifications of their "minimum payment" issues by mortgage "professionals" who didn't either understand them, or were in the business for short term financial gains for themselves and are now back selling shoes. FNMA and Freddie Mac are too important to the people of this country trying to finance their owning a home or refinance their existing home mortgages, to have either of the bills offered by the House PATH program or the Senate bill authored by Senators Johnson and Crapo to pass into law.
    Should they co-exist as separate entities for the future, maybe not? But the Hensarling debacle approach is a disaster in the making, and the J&C proposal is not that much better in its approach to reform. Remove them both from Government control. reduce or remove the implicit guarantee of the Treasury backing their activities, and let them prove once again that they deserve to manage their activities as USA's housings financial support backbones. Those of us who have been in this industry long enough to remember the early 1980's when the major banks had more control over interest rates and available funds for housing, and each home mortgage was at 16% or higher, do not want a repeat of that experience without FNMA and Freddie Mac in our corner. From a Mortgage Banker since 1965.
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