Mortgage Bankers Group Urges Fannie, Freddie Changes

The U.S. Mortgage Bankers Association said on Wednesday it will ask Congress to transform mortgage lenders Fannie Mae, Freddie Mac into several smaller, privately held companies that would issue mortgage securities with a government guarantee. [Emphasis mine]

The new companies would guarantee the securities against defaults on underlying mortgages and pay fees into a federal insurance fund that would make good on interest and principal payments to bondholders if the companies were unable to make them.

And so the "virtuous" cycle begins once again!

In 1992, when Congress (Democrat control) changed the charter of Fannie/Freddie etc. to include its "affordable housing" requirement, we the victims ~~taxpayers~~ were "protected" against exactly what happened.

As noted in the Federal Housing Enterprise Financial Safety and Soundness Act of 1992:

§ 4503. Protection of taxpayers against liability

This chapter may not be construed as obligating the Federal Government, either directly or indirectly, to provide any funds to the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Federal Home Loan Banks, or to honor, reimburse, or otherwise guarantee any obligation or liability of the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Federal Home Loan Banks. This chapter may not be construed as implying that any such enterprise or Bank, or any obligations or securities of such an enterprise or Bank, are backed by the full faith and credit of the United States.

We were supposed to be "protected" then and we weren't. Now we're going to be sold a bill of goods that it will "insure" itself. Want to see how well that works?

Look at ARISA! Look at the FDIC!

It's another scam.

One good change might to be to get an actual banker who’s run things in an acceptable manner.

Of course, this eliminates anyone who’s had associations with the loon.

He only deals with folks of his ability - which means no ability.

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