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Obama nominee content to see Fannie and Freddie killed off

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Mortgage Professional America | 01 Jul 2013, 07:00 AM Agree 0
President Obama's pick to head Fannie and Freddie is content to see the mortgage giants killed off, it has been reported
  • CharlieG | | 01 Jul 2013, 09:46 AM Agree 0
    It never would have come to this had the CRA not been enacted. Government interference in the private sector seldom is successful. In this case, both Fannie and Freddie were doing well, despite the fraud by Franklin Raines and Jamie Gorelick, until pressure was put on them by Barney Frank and his buddies to make crappy mortgages.
  • Penny Z | | 01 Jul 2013, 12:43 PM Agree 0
    I totally agree with Charlie G. Clinton started teh downslide in the industry by insisting everyone should own a home. I believe everyone should have a home but not all are willing or able to take care of a home. MOre damange than good was - and is - done by CRA.

    I totally disagree with bailing out underwater mortgages. Borrowers chose to put little equity into their homes, or took the equity out. There are no guarantees that anything you purchase will appreciate. Homes are about the only thing besides stocks that are even likely to appreciate. Borrowers owe the money. Why should some be given what are in effect gifts of equity when most of us work hard to buy only what we can afford and make every effort to pay back what we owe --- on time.

    Freddie & Fannie came into being for a reason - to bring liquidity to the housing market. That is still needed. With the absurd amount of unreasonable regulation, I don't anticipate enough private capital interest. Or should we just continue to sell our soul and security to the Chinese?
  • John C Durham | | 01 Jul 2013, 06:03 PM Agree 0
    Hmmnnn. Blame the victims. Creepy. Especially at this date with so much information out there as to the real cause of our calamity.

    Penny & Charlie's comments are a complete distortion of a very large criminal event. It is inappropriate to talk about anything except the criminal prosecution of the mbs issuing bankers Goldman, Chase, Citi, BofA, WellsFargo and MorganStanley and also of course the rating agencies who sold AAA for junk paper.

    There is no other issue involved I'm aware of. Everyone buying a home that can make payments on a legit mortgage is hardly a economic problem but is very much the opposite.
  • Lonn Dugan | | 03 Jul 2013, 07:53 AM Agree 0
    Penny Z said no to bailing out underwater mortgages. I DISAGREE: ALL Home Owners paid a terrible price for the sins of the mortgage market elite who created this mess. If the investment houses and banks were TOO BIG TO FAIL then the AMERICAN CONSUMER is TOO BIG TO FAIL and deserves a bailout as well. Forgiving a portion of their equity at this point helps restore consumer confidence, freeing us from the economic paralysis in which we are stuck. Consumer spending will finally recover and the "American Dream" will be back in reach of the masses.
  • Ron Starr | | 03 Jul 2013, 02:13 PM Agree 0
    While I certainly understand the issue with homes being underwater I can't describe the homeowners as victims. In earlier times individuals knew better, Buying a home without a down payment is foolish. Taking an adjustable rate knowing the rates would increase is foolish. The latest Federal regulations are there to protect consumers, but for consumers to ask their neighbors to bail them out with tax dollars seems a bit greedy.
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