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View Full Version : Economics Fannie, Freddie, and the need to reform the regulators


HonestChieffan
03-09-2011, 07:30 AM
http://reason.com/archives/2011/03/04/the-truth-about-fannie-and-fre

Lets hope this is addressed by congress.

FD
03-09-2011, 09:51 AM
I agree. The president has put forward plans for Fannie and Freddie to be shut down and sold off, but congress hasn't responded (as far as I know).

LOCOChief
03-09-2011, 12:09 PM
Why close the barn door now? The horse is already out.


This is a good article but the situation is so much worse.

Just about every mortgage loan ever originated in this country is originated to Fannie / Freddie standards i.e saleable

Fannie and Freddie (agency) set the standard. If a portfolio lender developes a loan policy that has more restrictions and requirements then that of agency loans then that portfolio lender would soon be out of business as they would never originate a loan except for those that don't even meet agencies loosened standards.

They pushed all lenders into this. And when someone said" hey maybe we should take a look at the GSE's criteria that little POS Barney Frank went balistic.

Now we're just screwed and like I said the horse is already out of the barn. Fannie and Freddie don't want to loan money at all now no matter what kind of securitization it has.

KC native
03-09-2011, 09:02 PM
I got no farther than the 1st paragraph. Unmitigated garbage. Fannie and Freddie were peanuts. Their market share of MBS's dropped precipitously during the boom in housing.

Keep focusing on the bullshit though. Wall Street loves schmucks.

The Mad Crapper
03-10-2011, 08:42 AM
I got no farther than the 1st paragraph. Unmitigated garbage. Fannie and Freddie were peanuts. Their market share of MBS's dropped precipitously during the boom in housing.

Keep focusing on the bullshit though. Wall Street loves schmucks.

More words of wisdom from the Ameriprise salesman.

:drool: