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Homeowners could pay more under Obama Fannie and Freddie plan

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Mortgage Professional America | 08 Aug 2013, 05:57 AM Agree 0
If President Barack Obama and Congress follow through with plans to shut down Fannie Mae and Freddie Mac, homeowners could find their wallets a bit lighter each month
  • The Old Man | | 08 Aug 2013, 09:47 AM Agree 0
    Don't be misled. The government intent is to take 1 - 3% in fees on every mortgage for their quasi backing. Quoting Mr. Obama, "...lenders will pay a fee". They see the mortgage market as a "cash generator". They look at the 132 billion fannie has already paid back for the 183 billion bail out, and say, "wow!, this could be a gravy train, and the fees don't show up on any disclosure so the borrowers won't know they are getting ripped off. Note- when they added gse fees to offset the 2% reduction in ss withholding, did you see them reduce that gse fee when the withholding went back up?
  • JCRussell | | 08 Aug 2013, 09:51 AM Agree 0
    Unless I am missing something, on the Senate plan of Zandi's estimated $135/mo jump in interest expense, a $100,000 30 year mortgage at 4.00% would equate to a payment with a rate of nearly 6.25%. OR comparing to FHA, equal to an annual MIP factor of 1.62% which is presently higher than FHA's. Not a pretty picture.....
  • Roger | | 08 Aug 2013, 09:53 AM Agree 0
    Never trust the government's estimation of cost, its almost always low. Just look at the cost of Medicare prescription drug benefits, over estimates by 400% and then there's Obamacare that looks to be at least 300% over budget and it hasn't even gone into effect.

    What will happen if they dismantle Fannie and Freddie is that new home ownership will come to a halt and the ripple effects of decreased housing spending will cause us to drop back into recession.

    I really don't think anyone in Washington has thought this through.
  • Sam T | | 08 Aug 2013, 10:37 AM Agree 0
    If you believe, that consumers wallets are going to be "a bit lighter", and will only see a "small increase" in their payments... then I have the proverbial bridge in New Jersey to sell to congress and Obama. Once again, the consumer will get the shaft.. the banks will eek out of this ....
  • Sam T | | 08 Aug 2013, 03:50 PM Agree 0
    Has anyone in Washington thought this through? Of course they have, otherwise how are they going to pad their own wallets even more. There is going to come a day... a day that ... well, use your imagination here!
  • Bayview Mortgage Inc. | | 09 Aug 2013, 12:54 AM Agree 0
    It would take 30 years to dismantle fannie and freddie. They need to combine both programs, form a new secretary of fannie and freddie and cut all the million dollar employees down to government capped paychecks.
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