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Debate rages over PATH Act

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Mortgage Professional America | 23 Jul 2013, 06:07 AM Agree 0
Debate is intensifying over the PATH Act, which supporters portray as a path toward a healthier housing market, and critics portray as the highway to mortgage hell
  • Bill in Florida | | 23 Jul 2013, 10:56 AM Agree 0
    Talk about ignorant people trying to shut the barn door after the horses got away. There was no problem with Fannie and Freddie until congress pushed them into making more mortgages to expand the percent of home ownership from the 64-65% to nearly 70%. On top of that they allowed them to earn huge bonus' on their mortgage genration. Neither apply today. Guidelines are more ridged now than when I started in the business in the mid 70's or the S&L crises in the 80's. They are finally showing nice profits but have to direct deposit it to the Fed's. I'm so sick of politics impacting my industry I can't see straight. We don't need to get rid of either one...we need to get rid of congress with term limits!
  • Larry in NJ | | 23 Jul 2013, 11:37 AM Agree 0
    I recall the liquidity crisis of 1966, times when there were no available mortgage funds at the institutions, controlled FHA rates bringing about an 8 to 10 point FHA market that prompted the creation of FNMA and later FHLMC. The GSEs need to run a businesses, not as political tools; they can and should be instrumental in the correction and reformation of a normalized housing market and industry
  • Wm Matz | | 23 Jul 2013, 02:34 PM Agree 0
    The real problems with FNMA/FHLMC are well detailed in the book, Reckless Endangerment [Morgenson/Rosner]. It was not Congressional pressure but greed that led the GSE execs to use Enron-type accounting to maximize bonuses. The execs should be in jail, but they were all politically well-connected.

    Probably no surprise that borrowers received very little benefit from the imlicit Gov't guarantee of the GSE's. Most of the benefit went to the execs. Just more crony capitalism.
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