How the administration will get rid of Fannie Mae and Freddie Mac
I mentioned earlier that the administration plans to get rid of Fannie Mae and Freddie Mac. But I didn't say much about how they mean to go about doing it. Luckily, Daniel Indiviglio has a nice, clean summary:
One change would be to gradually increase the guarantee fees that [Fannie and Freddie] charge, so that private guarantors would be able to better compete. Another change would be to require Fannie and Freddie to obtain more private capital to cover subsequent credit losses. The Treasury also intends to reduce the size of mortgages that qualify for Fannie and Freddie guarantees. Finally, the administration intends to wind down Fannie's and Freddie's mortgage portfolios, by at least 10% per year.
By
Ezra Klein
| February 11, 2011; 5:01 PM ET
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All of the above, not going to happen before the 2012 election. While this is often the most suicidal administration since Carter, I can't believe that Daley would think crashing the real estate market (again) before an election is sound policy!
Posted by: johnmarshall5446 | February 11, 2011 5:09 PM | Report abuse
Good riddance.
They didn't cause the housing crisis, but they later contributed to it later after the private lender giants like countrywide started things. Plenty of data to prove that.
This is one area where gvmt needs to be trimmed, especially in these days of trillion dollar plus deficits.
Posted by: lauren2010 | February 11, 2011 5:11 PM | Report abuse
Of course, people warned that Fannie and Freddie never should have been created. Now, it's clean-up-another-socialist-mess time, and years before it's done, if it ever is. What a joke.
Posted by: msoja | February 11, 2011 8:13 PM | Report abuse
msoja:
Nothing about your post is factual. If you want to try show HOW this was a mistake, it's a long weekend!
Posted by: johnmarshall5446 | February 11, 2011 10:28 PM | Report abuse
--*Nothing about your post is factual. If you want to try show HOW this was a mistake, it's a long weekend!*--
Yer kidding me, right?
How is the disaster of it, especially at this point, not self-evident?
Posted by: msoja | February 11, 2011 11:02 PM | Report abuse
We submitted a request for a mortgage quote and received 3 great offers at "123 Mortgage Refinance". Thank you for helping us lower our house payment with 3.14% mortgage refinance rate. Highly recommend and best place for mortgage refinance.
Posted by: betsyclark369 | February 12, 2011 1:35 AM | Report abuse
--*Nothing about your post is factual. If you want to try show HOW this was a mistake, it's a long weekend!*--
--Yer kidding me, right?
How is the disaster of it, especially at this point, not self-evident?---
Clearly not self-evident enough for you to comprehend what caused the aforementioned disaster.
Posted by: Hamtree | February 12, 2011 1:51 AM | Report abuse
--*Clearly not self-evident enough for you to comprehend what caused the aforementioned disaster.*--
At this point, Fannie and Freddie ARE disasters, outside any fol de rol about failure of markets and greed of Wall Street or any of the other pap you're likely to spout.
Posted by: msoja | February 12, 2011 9:44 AM | Report abuse
msoja:
Again what are you specifically complaining about? You may have a strong case, but make it please.
If you go to the Dodd Frank post by Ezra today, you will find an excellent post by "beacon" on this subject.
Posted by: johnmarshall5446 | February 12, 2011 11:19 AM | Report abuse
Never hap'n Cap'n.
Posted by: fbros | February 12, 2011 12:27 PM | Report abuse
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