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Housing advocate: Congress should focus on fixing – not replacing – Fannie and Freddie

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Mortgage Professional America | 20 May 2014, 07:40 AM Agree 0
Congress should go back to the drawing board on its plans for reforming Fannie and Freddie, says the head of a housing advocacy group
  • Larry | | 20 May 2014, 10:44 AM Agree 0
    Read Mr. Taylors comments, at least someone has a little c9ommon sense.
  • Cheryl M | | 20 May 2014, 11:29 AM Agree 0
    Hip Hip Hooray!!!! Now Taylor needs to get together with those Democ. that took themselves out of the vote for this "Crapo" Bill ...Warren, Schumer etc....and etch some common sense into a BIll that will actually do just that, fix not dismantle. Our housing is already at a sensitive state this would cause another housing collapse (something we don't need right now)
  • Stan J | | 20 May 2014, 12:23 PM Agree 0
    Two entities with a history of scandals involving malfeasance and mismanagement are called upon to "regulate" others. That is what is wrong with our system.
    It is time for the private sector to step up and sponsor its own mortgage insurance plan and regulation of the mortgage industry instead of relying upon taxpayer subsidies as do the Wall Street Banksters. We have too many money-changers and not true capitalists in the real estate industry.
  • Phil Corvinus | | 20 May 2014, 01:00 PM Agree 0
    It is apparent that Stan does not know what he is talking about and nothing about the mortgage industry and how it operates.It would take at least ten years before a new start up of any replacement entity could do what FNMA was doing 40 years ago. Get real Stan, the real problem was congress forcing them to drop their under writng requirements so the people on welfare could buy houses
  • Jaded | | 22 May 2014, 04:04 PM Agree 0
    DUH... The obvious fix is to take them out of conservatorship, and re write the agreements that had to agree to during the financial mess.

    @Phil, you shouldn't knock on stan especially you don't know what you are yapping about either. Congress did no such thing, UW guides were pretty much the same for a couple decades prior to 06-08 when the crisis started and when it really hit the fan. Between 2000 and 2006 Fannie/Freddie and FHA were in the minority as far as the type of mortgage people were getting into, the normal "A" accounted for less then 80-85% of all mortgages originated. What happened in 06-08 was probably a result or had a mjor impact of the repeal of the Glass-Stegall (pardon the spelling if incorrect) under Clinton Admin. Which allowed banks to speculate with funds/deposits, which is how sub prime mortgages came about more or less... more complicated but i don't have the time to go into details. It was these mortgages (sub prime, btw... had there own warped guidelines) that were created by, B of A, JPMorgan, Wells, Countrywide, Aegis, New Century, Lehman Brothers, Goldman Sux, and on and on, but what did we do as a government/legislation under Obama's admin, they protected the larger fish. Fannie and Freddie NEVER did sub-prime, that got stuck in the downward spiral of the real estate market and failed investments in Mortgaged Backed securities (you know all those good pools that were rated as cant lose pools that S and P and Moody s of the worlds said that they were A pools knowing they really weren't or worst didn't have a clue what was in those pools).

    Now when you hear that Fannie and Freddie arent financially stable that is because its currently stuck in a choke hold with the government. You see, every single bit of profit goes back to the Treasury dept, which means, they have paid back every dime it took from Tarps, that being said, they have also OVERPAID to the tune of almost 30 billion dollars and still growing. So if Treasury dept is take all the profits, which i am not making up, of course it could happen that they would need to be bailed out if there was another downward spiral because they cant put money in the rainy day funds (savings). Isnt funny that there is even talk about shutting down the most profitable arm of the government???? The Brilliant minds of our politician never seize to amaze me.

    Sincerely,

    Ex-Wholesale Account Executive for a mortgage bank that only sold fannie/freddie, FHA and VA mortgages when no one wanted them during the 2000-2007. (i do know a thing or 2 about the secondary market too)
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