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MPA Comment of the Week: A warning from history

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Mortgage Professional America | 16 Aug 2013, 03:48 AM Agree 0
Originators have sounded off on proposals to dismantle Fannie and Freddie, and one has offered a stern warning from history
  • Joel Epstein | | 16 Aug 2013, 09:07 AM Agree 0
    I agree. The GSE's are making big profits and paying back the gov't mortgages. Remove the conservatorship, give them strict guide lines and have Congress stop messing with them.
    They have served the industry well and will do so in the future.
  • Amazed reader | | 16 Aug 2013, 09:30 AM Agree 0
    To suggest that Andrew Jackson's actions in the 1830's led to the Great Depression of almost a century later is like blaming the guy who invented the wheel for all automobile fatalities. MPA,maybe you don't need to have a "comment of the week" every week, or at least not this week.
  • CharlieG | | 16 Aug 2013, 09:30 AM Agree 0
    Congress has shown that it will never stop "messing" with government programs. We had the Federal Reserve in place but still had the Great Depression. Get the government out of lending and let the free market assess the risks and set the criteria. too bad for those who can't qualify and too bad for those who now use the broke FHA as a subprime outlet. Fannie was created in 1937 because no one would buy FHA mortgages. Their mandate was extended in 1969 to include conventional mortgages but they didn't start buying them till 1971. Both types of mortgages are now widely accepted as investment grade (provided they are underwritten properly) so let's get the politicians out of control of those organizations.
    A brief history:
    FHA's 235(i) mortgages caused the FHA's general fund to go into the red for the first time; hence the creation of UFMIP and they still ain't making the grade.
    FNMA's mortgage levels and subsequent dip into toxic waste caused its demise. Go away government. Go away politicians and leave us the hell alone!
  • Mary | | 16 Aug 2013, 09:53 AM Agree 0
    The GSE's make homeownership possible for qualified home buyers. Do away with them and we will become a nation of renters.
  • Thorough Reader | | 19 Aug 2013, 12:52 AM Agree 0
    @Amazed reader
    Read the comment again. He didn't suggest Jackson caused the Great Depression. He's referring to a separate event in the 1800s (specifically the Panic of 1837). I thought that was pretty clear.
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