Skip to comments.Fannie, Freddie Takeover Could be Key to Obama Jobs Plan
Posted on 08/25/2011 7:08:53 AM PDT by Oldeconomybuyer
There have been rumblings for weeks that the economic plan to be offered by President Obama after he returns from his vacation would be aimed, at least in part, at trying to re-inflate the American housing market.
The dribbles from the White House on housing have hinted at some big ideas: having the government hold and lease foreclosed homes and even having the government fully take over busted and bailed out mortgage buyers Fannie Mae and Freddie Mac.
The trial balloon in todays New York Times puts the earlier leaks in perspective. The idea is to have the government offer to refinance the mortgages of millions of Americans whose credit scores prevent them from grabbing the lower-than-5-percent commonly available to qualified buyers today.
The administration is envisioning an $85 billion instant stimulus as those with poor credit see their rates drop dramatically. But to do it, the government would likely need to take over Fannie and Freddie.
One of the criticisms on the left of the Obama efforts to revive the housing markets have failed is because they have been modest and voluntary. This would be large and mandatory.
But part of the reason the president resisted something with, as they say at the White House, bigness has been that Americans who pay on time and keep their credit in good shape would deeply resent a subsidy for the credit unworthy.
Another problem: If the government will give cheap money to almost anyone, banks may get out of residential lending altogether.
(Excerpt) Read more at foxnews.com ...
[Americans who pay on time and keep their credit in good shape would deeply resent a subsidy for the credit unworthy]
Ya think? And the payment reductions from refinancing won’t save any of the defaults anyway.
If this is the only way to put the boots to socialism once and for all.
There’s only one way to defeat a liberal: Give them everything they want........................
That picture of Huge-o Prostate-o and Obama says it all.
[Theres only one way to defeat a liberal: Give them everything they want]
Yup, we have to let it all burn. Can’t stop it now. Just don’t get caught in the blowback.
(and no, I’m not saying set the fires, the arsonists are already here).
And he thinks he can get that plan through the House?
I think not.
Sounds like “Let Obama Do The Squatting For You”.
If he wants to dig people out of a credit hole, perhaps doing something about Citi and Cap One getting free money from the Fed and lending it out to consumers at up to 30% would be more effective?
this is out and out socialism.
This is also a new twist on spreading the wealth, now we are going to spread the debt?
we can recognize the ‘progressive’ defacto nationalization of businesses through taxation and regulation. A 1990 article, ‘Are the GSE’s the next disaster?’, said it all. During the housing boom, small banks complained of being inable to compete with Freddie and Fannie. now we know why.
Just great, the foreclosed house next to me will be next will be rented to gang banger drug addicts. This could get ugly.
This would create Section 8 in EVERY neighborhood. All you would have to do to finish the Obama civilian army would be to give them “neighborhood reporting and civic duties” in exchange for their free or nearly free homes.
Another announced takeover of some industry or Govt agency will put the economy and Obama further in the tank.
Obama just refuses to grasp how Leftist he is perceived. Americans will simply see “more of the same” and react accordingly.
Obambi don't need no steenkin' house. Stroke of the pen, law of the land. Kinda' cool, huh?
Someone should tell the financial geniuses in the BHO that its not poor credit scores preventing homeowners from refinancing..its the fact that their collateral property is worth less than the amount owed.
No responsible lender today would accept less than 75-80% loan to value on either a purchase or refinance..if the federal government is proposing backstopping poor credit risks at 100% LTV they're simply taking on unacceptable risk at the taxpayers expense.
BINGO. In Florida, we are seeing more “rentals” (technically in foreclosure or pre-forclosure). As a result the property values in some of these neighborhoods will now drop even more. This includes HOA communities. Is it possible that the banks and mortage companies are being coerced to provide this housing as rentals...on the terms set by this administration?
If this administration could give away house keys to 1 million homes, do you think he would?
Ponder these two recent articles:
Report: Bank of America Sold Mortgage Pool To Fannie Mae
(BofA sells pool of 400,000 loans to the government-sponsored mortgage holder)
Gov’t considers turning foreclosures into rentals
(Per th is article, 250,000 homes are owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration) Now, add the additional 400,000 from BofA.
If I know Obama and I think I do-—His plan will be expensive and it won’t work.
So is this another thing that Obama could pass by EO or would he need the House to pass it?
Out and out communism folks! This ‘plan’ would be a godsend for our side! Please let Obama float on this ‘big idea’ all the way back to Kenya!
If their current mortgage is part of fannie or freddie, then they would qualify too.