"Yes. This is a better arrangement, Comrades....more just."
Posted on 10/24/2011 12:46:18 PM PDT by Todd Kinsey
For over a year I have been warning that the Obama Administration plans to use Fannie Mae to nationalize a significant portion of America’s real estate market. Today the President announced plans to utilize executive orders to side-step Congress, usurp the Constitution, and allow the government owned mortgage giant Fannie Mae, to start gobbling up mortgages.
The President’s plan will implement sweeping new rules that will allow the nationalized mortgage behemoth to refinance mortgages. Once Fannie Mae owns the mortgage, there’s nothing to stop the Obama Administration from using the Making Home Affordable Plan to allow people to exit their mortgages, with $3,000 in hand, then have Fannie Mae or Freddie Mac purchase the home and rent it back to them for pennies on the dollar.
Together, Fannie and Freddie own more than half of America’s $12 trillion in outstanding mortgage balances; the majority of which are subprime loans. Beginning with the Clinton Administration and continuing with the Bush Administration, the Federal Government forced lending institutions to issue subprime loans to those that would not normally qualify for a mortgage.
Despite two feeble warnings from President Bush and a half-hearted attempt by Senator John McCain to regulate the two faltering lending giants, no one really wanted to upset the economic apple cart. The two companies kept right on issuing subprime mortgages and engaging in their predatory lending practices. Time and time again, both Rep. Barney Frank and Senator Chris Dodd, who are responsible for Congressional oversight of Fannie and Freddie, not only lied to Congress about the financial solvency of the two mortgage giants but to the American people.
This deliberate act of deception was engineered by two of the most prominent members of Congress and is what precipitated the mortgage crisis. Not only did Rep. Frank claim that Fannie and Freddie were “financially sound” but he doubled down when he asserted “that we should be doing more to get low income people into housing.” Furthermore, Frank stated that even if the two mortgage behemoths did fail “the government would bail them out,” which was probably the plan all along.
Then in 2008, the Democrat led House and Senate passed, then George Bush signed, the now infamous $300 billion Troubled Asset Relief Program, better known as TARP. President Bush did this in direct opposition to his conservative base. Care to make a wager on who received the lion’s share of TARP funding? If you guessed Fannie and Freddie give yourself a prize. That’s right, the two companies received a combined $169 billion from TARP which accounted for 56 percent of TARP expenditures.
And it gets worse from there. When President Obama took office, he instructed the two paper tigers to begin buying up foreclosed homes. According to Stimulus Package Details, Fannie received another $200 billion influx of cash from the Stimulus Package.
According to Reuters, Fannie received an additional $8.5 billion to continue snatching up foreclosures in May of 2010. At the time, I predicted that President Obama’s end game was to turn all of the assets owned by Fannie & Freddie into Government Housing.
This past August, Hot Air.com chronicled details of the faltering mortgage giant receiving another $5.1 billion cash infusion from the Obama administration. Furthermore, the Associated Press reported that the Obama administration quietly announced that it was planning to turn the estimated 250,000 foreclosed homes that have been purchased by Fannie Mae and Freddie Mac into Government Rental Housing.
Fox News recently published an article detailing the Administration’s plans to implement a further $85 billion “instant stimulus” to nationalize Fannie and Freddie once and for all. Even the ultra-liberal website Mother Jones thinks the President’s plan is foolish. Kevin Drum who penned the article believes the president’s plan is bad because it will cause the taxpayers to loose even more money than they already have on the two failed mortgage giants.
Thus far, Fannie Mae and Freddie Mac have received over $382 billion in taxpayer assistance and have not repaid a cent (almost 40% of all Federal Stimulus if you were wondering). When added to the $6.1 trillion in mostly subprime mortgages that it already owns, the Federal Government could become the owner of more than half the homes in America. In one fell swoop, President Obama could effectively nationalize the housing industry, making it the largest landlord in the world, and completing the largest redistribution of wealth in history.
And sew up the vote for 2012
My first thought is that a lot of houses will come off the market to be sold independently by the seller.
My second thought is that arson will skyrocket.
If the real estate industry wanted to protect themselves and their future - they should have bought these homes and offered “rent to purchase’ programs.
The Federal Government will buy a home for $120K and rent it for $1000 per month. Will be in a profit margin within 10 years. Gravy train for the Feds - nothing for the tax payers or renters. Likely no property tax for local school districts either.
"Yes. This is a better arrangement, Comrades....more just."
A house for your vote ...
The price of a vote is getting out of hand.
Yeah, if they are Dem votes!
And the best houses will be given to those who tow the party line. Being able to tell us where we can live and where we can not live is a wet dream about to come true.
And to all those who could only post, “pay your mortgage”, we tried to tell you so, but you would not listen. It has been obvious this was coming for more than a year. Why do you suppose they “lost” all those notes?
Private property ownership is the cornerstone of a free society. No wonder this bunch wants to abolish the concept so badly.
First it was the heavy-handed confiscation of “public” lands. Now they’re going after private property in every way imaginable.
Scoundrels.
No, but their deceased former owners do.
I’ve been following the stock markets recent run up. Nothing supports this as we are almost in a recession again, just bumping along the bottom of the threshold for positive gains. So, what could it be. Perhaps the market is signaling that Barky’s term of office will be one term? Market generally looks out 6 to 12 months so I think this could be a consideration.
I have heard radio ads for a company which would buy your house and lease it back to you.
This company says it doesn’t matter if you are under water on the mortgage. They say they will buy it from you, absorb the mortgage, then rent the house back to you so you don’t have to move. It claims that it will give you a five year lease so you have stability for a period of years as you get back on your feet, financially.
I don’t know how many deals this company has done. But at least that’s a free market type solution to the problems of housing.
I reached a point where I don’t quite trust anything which Obama proposes to do.
but ... I refuse to vote for a democRAT, even if I am deceased. Can I do that?
Since the markets bottomed in early 2009, the bulk of the rise has been in inverse lock-step with the strength of the dollar; dollar weakens, market goes up, dollar strengthens, market goes down.
LLS
Nope.
The Deceased-American voting bloc votes Rat.
Halloween has me in a six foot hole. My Will says that I am to vote for someone other than a democRAT. Has my Will been taken over too? If so just leave me buried! No need to dig me up.
I thought it was curious
and discouraging
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.