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Fannie, Freddie Takeover Could be Key to Obama Jobs Plan
FOX News ^ | August 25, 2011 | By Chris Stirewalt

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 today’s 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 ...


TOPICS: Business/Economy; Culture/Society; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: bubble; crash; democrats; failure; fannie; foreclosures; housing; liberalfascism; obama; obamanomics; socialism; tyranny


1 posted on 08/25/2011 7:08:56 AM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

[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.


2 posted on 08/25/2011 7:12:30 AM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: Oldeconomybuyer

If this is the only way to put the boots to socialism once and for all.


3 posted on 08/25/2011 7:12:35 AM PDT by Jonty30
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To: Jonty30

There’s only one way to defeat a liberal: Give them everything they want........................


4 posted on 08/25/2011 7:14:23 AM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Oldeconomybuyer

That picture of Huge-o Prostate-o and Obama says it all.


5 posted on 08/25/2011 7:14:39 AM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: Red Badger

[There’s 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).


6 posted on 08/25/2011 7:17:09 AM PDT by DaxtonBrown (HARRY: Money Mob & Influence (See my Expose on Reid on amazon.com written by me!))
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To: Oldeconomybuyer

And he thinks he can get that plan through the House?
I think not.

Sounds like “Let Obama Do The Squatting For You”.


7 posted on 08/25/2011 7:21:03 AM PDT by Buckeye McFrog
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To: DaxtonBrown

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?


8 posted on 08/25/2011 7:23:07 AM PDT by Buckeye McFrog
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To: Oldeconomybuyer
So the government would own the banks, and the debt?, and the land and buildings?

this is out and out socialism.

This is also a new twist on spreading the wealth, now we are going to spread the debt?

9 posted on 08/25/2011 7:23:16 AM PDT by oldbrowser (They're socialists don't call them liberals)
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To: Oldeconomybuyer

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.


10 posted on 08/25/2011 7:26:53 AM PDT by griswold3 (Character is Destiny)
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To: oldbrowser

Just great, the foreclosed house next to me will be next will be rented to gang banger drug addicts. This could get ugly.


11 posted on 08/25/2011 7:29:20 AM PDT by refermech
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To: DaxtonBrown

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.


12 posted on 08/25/2011 7:30:37 AM PDT by Pearls Before Swine
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To: Oldeconomybuyer

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.


13 posted on 08/25/2011 7:35:07 AM PDT by PGR88 (I'm so open-minded my brains fell out)
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To: Buckeye McFrog
And he thinks he can get that plan through the House?

Obambi don't need no steenkin' house. Stroke of the pen, law of the land. Kinda' cool, huh?

14 posted on 08/25/2011 7:44:04 AM PDT by Bob Buchholz
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To: Oldeconomybuyer
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.

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.

15 posted on 08/25/2011 7:50:58 AM PDT by mac_truck ( Aide toi et dieu t aidera)
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To: Pearls Before Swine

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
http://www.forbes.com/2011/08/10/bofa-reportedly-sold-mortgage-pool-to-fannie-mae-marketnewsvideo.html
(BofA sells pool of 400,000 loans to the government-sponsored mortgage holder)

http://www.freerepublic.com/focus/f-news/2761747/posts
AP article:
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.


16 posted on 08/25/2011 7:56:09 AM PDT by ruralvoter
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To: Oldeconomybuyer

If I know Obama and I think I do-—His plan will be expensive and it won’t work.


17 posted on 08/25/2011 8:01:38 AM PDT by Venturer
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To: Oldeconomybuyer

So is this another thing that Obama could pass by EO or would he need the House to pass it?


18 posted on 08/25/2011 8:09:47 AM PDT by Siena Dreaming
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To: Oldeconomybuyer

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!


19 posted on 08/25/2011 8:18:16 AM PDT by penelopesire (Let The Congressional Hearings Begin!)
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To: DaxtonBrown

If their current mortgage is part of fannie or freddie, then they would qualify too.


20 posted on 08/25/2011 8:23:49 AM PDT by Fred ('Just cus I said it, don't mean I meant it'....Obamaism)
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To: Oldeconomybuyer

B.O.H.I.C.A.

We’ll be leasing high-dollar homes to the poor and homeless who won’t be able to make the subsidized rent and will tear the place up.

Community Organizing at its ideal—but least practical or attractive.


21 posted on 08/25/2011 9:22:31 AM PDT by wildbill (You're just jealous because the Voices talk only to me.)
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To: Pearls Before Swine

Not long ago, your prediction would have been tagged as tinfoil. In avowed socialist countries, at least they hire mathematicians and scientists to plan society; we use lawyers.


22 posted on 08/25/2011 9:26:45 AM PDT by Jacquerie (More Central Planning is not the solution to the failures of Central Planning.)
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To: Jacquerie
Not long ago, your prediction would have been tagged as tinfoil.

Not long ago, I couldn't have imagined making it!

23 posted on 08/25/2011 11:22:37 AM PDT by Pearls Before Swine
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