Big Changes Coming for Mortgage Market

CNBC ^ | February 07, 2011 | Diana Olick

[CutePuppy]

Government-Sponsored Enterprise Fannie Mae (and later spin-off Freddie Mac) was created by FDR in the midst of the Great Depression (the Great Correction) to buy, service, guarantee and securitize (package into MBSs) the FHA loans for the mortgages, to encourage and "reduce the risk" of home ownership.

The percentage of home ownership in the U.S. hasn't been higher relative to other developed economies, such as Canada, so these relics of the Great Depression should have been dismantled long time ago. Instead, the "progressives" used them as a bulwark in their "politically correct" policies of "ownership society" and even doubled down with Carter's CRA and Clinton's HUD and DOJ enforcement policies, and "community organizers" like Obama filing lawsuits against the banks to force "subprime" lending.

The result of all this massive government intervention in the market economy was not "unexpected," with nine out of ten mortgage loans now effectively under government control.

[E. Pluribus Unum]

Just give every black person in the country a free house and be done with it, Barry.

Just think how many votes that would buy!

[Free Vulcan]

Fannie and Freddie were the enabling conduit that allowed companies like Countrywide to originate their crap loans and pass them along to be securitized and ultimately poison the MBS market, and subsequently cause the housing crash. That we had a quasi-govt entity creating securities to sell with implied govt backing was a ludicrous thing to start with. Now we’re paying for it.

[dragnet2]

Here’s Bush’s 2002 speech pushing home loans to unqualified minorities...

http://www.youtube.com/watch?v=MqR15H0gNBU

[investigateworld]

Opps, that was supposed to be put into the memory hole!

[The Comedian]

government's role in the mortgage market, which right now is 95 percent of all new originations,

The Soviets would envy such perfect capture of private property.

Today is a good day to die.
I didn't say for whom.

[CutePuppy]

Yes, Bush actually originated the phrase “ownership society” sometime around 2003-2004.

Unfortunately, by that time at least half of the “home-ownership society” has been tightly integrated with and controlled directly or indirectly by the government, via GSEs, FHA and VA programs. The rest is history.

[gusopol3]

I hope black conservatives like Allen West, Herbert Cain and Thomas Sowell are comfortable with what you say, because we sure need them and I hope they feel welcome here. Incidently, I had the ignominy recently of opening an envelope from Wells Fargo to find a letter that they’d sold my mortgage to Fannie Mae. Ugh.

[E. Pluribus Unum]

All the people you mention are probably far more intelligent than you and are able to recognize sarcasm without a neon "sarcasm" sign.

[LomanBill]

Opps, that was supposed to be put into the memory hole!

Best Rats and RINOs Money Could Buy

 

 

[surfer]

I wouldn’t be surprised if Obama eventually hands over Freddie and Fannie to China to pay off our debts...

[investigateworld]

Thanks, I remember the FRee Trade crowd cited high levels of home ownership as being proof that it worked.

[LomanBill]

>>Yes, Bush actually originated the phrase “ownership society” sometime around 2003-2004.

Problem is W's noble vision got gamed by folks who were more like Henry F. Potter than George Bailey....

"__Ooops!__"

Welcome to Pottersville.

[investigateworld]

And why do you think that happened?

[dragnet2]

Opps, that was supposed to be put into the memory hole!

They forgot to send me the memo. That's my story and I'm sticking to it.

[The Comedian]

I wouldn’t be surprised if Obama eventually hands over Freddie and Fannie to China to pay off our debts

The PRC isn't as stupid as 48% of America. But point taken.

Today is a good day to die.
I didn't say for whom.

[Toddsterpatriot]

Still spreading that silly claim? LOL!

[LomanBill]

"We didn't truly know the dangers of the market, because it was a dark market," says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission [CFTC] -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. "They were totally opposed to it," Born says. "That puzzled me. What was it that was in this market that had to be hidden?"

http://www.pbs.org/wgbh/pages/frontline/warning/view/

 

Blue dress or not, even a monkey don't need a Weatherman to see which way the Wind blows.

 

 

 

[investigateworld]

LOL!!!

[surfer]

Well it would make over 95% of mortgage holders instant renters...lol