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Reid implores Obama not to kill Fannie and Freddie

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Mortgage Professional America | 14 Aug 2013, 05:29 AM Agree 0
Senate Majority Leader Harry Reid has broken sharply with the president on the plan to dismantle mortgage giants Fannie Mae and Freddie Mac
  • Bayview Mortgage Inc | | 14 Aug 2013, 09:38 AM Agree 0
    Just cut out any mortgages higher than $ 315,000.
    Thus the banks will have to take responsibility for any mortgage above this amount. Fannie and Freddie , FHA and VA were only suppose to bring borrowers into the system. Not support them.
  • Andrea | | 14 Aug 2013, 09:48 AM Agree 0
    It is really too bad how out of touch the current Administration is with reality and real people and their refinance and purchase needs.
  • Ken | | 14 Aug 2013, 09:51 AM Agree 0
    Be careful - the Law of Unintended Consequences can be brutal.
  • Jim Malloy | | 14 Aug 2013, 09:59 AM Agree 0
    Fannie and Freddie are infrastructure, which is an important government role. The problem was the politicians meddling in the guidelines making them crazy.

    Like building the interstate freeways system, we get much more done in a shorter period of time. Do you want you package shipped ground from Miami to LA to take a month? No, the feds built freeways and now private industry ships it over ground in 5 days.

    Fannie and Freddie were like a central bank. It is infrastructure. When Prez Andrew Jackson destroyed the 2nd Bank of the US (the central bank at that time) it led to local banks getting out of control which lead to a greater depression than in the 1930s.

    The answer is to give FNMA and Freddie more conservative guidelines so the politicians can not meddle for political purposes. The law should say they must be let to do they business but with annual and open to the public audits.

    Also the investors in them would get their money back when their value comes back.
  • Phil Corvinus | | 14 Aug 2013, 03:14 PM Agree 0
    Wells Fargo was pushing to kill both orgs. in the 70s, thank goodness thy failed. While it would be a good thing if both were combined for a more efficient company and keep rates at a reasonable market rate. If Wells Fargo and their allies succeed this time funds will dry up and rates will go through the roof
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