Obama to urge Congress in speech to shutter Fannie Mae and Freddie Mac

foxnews.com ^ | 8/6/13 | ap/foxnews

[ColdOne]

President Obama will urge Congress to shutter Fannie Mae and Freddie Mac, the mortgage-giants bailed out by the government in 2008, as part of a strategy to buffer taxpayers from future housing market downturns.

In a speech Tuesday in Phoenix, Obama will call for transitioning the business model of Fannie and Freddie into a system where "private capital must be wiped out before the government pays on any form of catastrophic guarantee," a senior administration official said.

Obama will also renew his calls for sweeping mortgage refinancing legislation when he travels to Phoenix Tuesday. Arizona's desert capital was the epicenter of the housing crisis that began in 2008, but the market there has rebounded strongly, with home prices up and foreclosures down.

[LibLieSlayer]

Gee... he also asked for what Fannie have been doing to continue... obama just having it BOTH ways again!

[LibLieSlayer]

We have guns... lots of them... Cypriots do not.

LLS

[ez]

Perhaps he wishes to replace them with an agency more under his control.

[Irenic]

“Fannie and Freddie currently own or guarantee half of all U.S. mortgages and back nearly 90 percent of new ones.”

“Among his proposals is a call for expanding refinancing eligibility for homeowners who do not have government-backed mortgages.”

[VeniVidiVici]

where "private capital must be wiped out before the government pays on any form of catastrophic guarantee," a senior administration official said.

Am I the only one thinking this is a shot across the bow (besides the fact that Obama is good at wiping out "private capital")?

Think Cyprus. Think of GM bond holders.

[Truth is a Weapon]

I have no problem with this. Let the chips fall where they may.

But 0bama should also forswear and forbid any government interference in the mortgage industry in the form of mandates to make loans to non credit worthy individuals.

[DoughtyOne]

Simply brilliant...

No matter what's ailing this nation, Barack Obama can be counted on to do something that will skirt around it as long as it makes it look like he's doing something.  Busy work...  look folks I'm busy!


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[originalbuckeye]

A comment on the speech prep........A Desert Vista mom called into the radio to say all the students were required to divulge their Facebook and Twitter account passwords so their pages could be checked for anti-Obama comments. If they checked out ok, they were awarded tickets to the speech .

[Rusty0604]

I just caught the tail end of Cavuto talking about this and he was saying it's just more gov’t involvement.

[mykroar]

That’s the plan. Surprised this article doesn’t mention it, but the plan is to replace F&F with another agency. So nothing will change, but it’ll be one cluster instead of two.

[machogirl]

Apparently Barry did a sneak-O into Desert Vista, bypassing the protestors and Barry-Love groups. I can’t listen anymore. He’s making me sick. Intro speaker tied Barry’s speech to “Immigration”. (speaker parents or himself immigrated from Mexico. “hard working families”).

“I,I,I, WE, WE, We”, “last year was “Phony Scandals” which apparently stymied Barry. (translation Republicans)

He has no idea that the houses here are being artificially inflated again by investors. Local media had been doing stories on it.

What a JOKE of a President.

[machogirl]

Live at azfamily.com

[nixonsnose]

http://market-ticker.org/akcs-www?singlepost=2138562

A picture of the original charter at the link.

They were never supposed to be underwritten by the US.

[machogirl]

Wants Congress to pay legislation to force refinancing at a “lower rate”. “Invest in affordable rental housing”. Help all families to get a mortagage or rent.

A smell a “Constitutional Right” to housing coming.

[Pearls Before Swine]

Cypressed... I’m sorry, it’s hard to take seriously the writings of someone who calls Cyprus “Cypress.”

[machogirl]

Wants congress to “write” legislation. oops I said “pay”. Now cheering at Obamacare. This is like a damn pep rally. Now promoting this saying it “saves” a lot of money. “More affordable”.

Barry is full of cra-.

[Fungi]

Bingo.

[elkfersupper]

FNMA and FHLMC were originally intended as liquidity providers for banks providing long-term fixed rate mortgage loans.

This was necessary because it would be incredibly stupid for a bank to make a 30-year fixed rate loan with deposit monies that mature every day or certainly for a much shorter term.

Too bad FNMA and FHLMC morphed into something else entirely under political pressure.

[Fast Moving Angel]

I don’t like the way he phrased it, “private capital must be wiped out.” That bothers me. A LOT.

[ridesthemiles]

Key words:

PRIVATE CAPITAL MUST BE WIPED OUT.