Posted on 08/06/2013 6:51:05 PM PDT by Lorianne
Obama will propose eliminating mortgage finance entities Fannie Mae and Freddie Mac over time, replacing them with a system in which the private market buys home loans from lenders and repackages them as securities for investors, senior administration officials said. The mortgage securitization process is deemed essential to the smooth flow of capital to housing markets and the availability of credit.
A government reinsurer of mortgage securities could backstop private capital in a crisis, the official said.
(Excerpt) Read more at reuters.com ...
“Mortgage finance reform should also incorporate a fee on mortgage products to be paid by financial firms that would help fund for lower-income families buy homes, the official added.”
That worked so well the last time!
I know! I’m tingly all over thinking how much better it will work this time!
An ardent proponent of the CRA, ACORN benefactor, organizer, and trainer Barack H. Obama, Esq., contributed to the increasingly hostile environment for banks when he represented the plaintiffs in the 1995 class action lawsuit Buycks-Roberson v. Citibank. The suit demanded that the bank grant mortgages to an equal percentage of minority and non-minority mortgage applicants. The bank settled the case three years later and reportedly agreed to beef up its lending to unqualified applicants...
http://spectator.org/archives/2008/10/29/acorns-food-stamp-mortgages
Here’s the problem with our present day liberals; they want to be God without being God (or without explicitly and sincerely leaning on God). Since the world unsaved only knows how to damn and not to bless, it’s going to come crumbling down.
..He is just trying to set up another mortgage collapse...but this time “private capital” will be left holding the bag....and subsequent bankruptcy.
This azzh*le never quits. Obama the destroyer.
Nope, taxpayers still on the hook ...
“A government reinsurer of mortgage securities could backstop private capital in a crisis, the official said.”
IMHO, this is exactly what causes people to lose their homes. Playing games with people's mortgages.
GOVT:Housing is too cheap! Let’s intervene!
GOVT:Housing is too expensive! Let’s intervene!
GOVT:Housing is too cheap! Let’s intervene!
GOVT:Housing is too expensive! Let’s intervene!
GOVT:Housing is too cheap! Let’s intervene!
GOVT:Housing is too expensive! Let’s intervene!
...
Looking for a quick fix to a long term problem.
Just what we need another bubble.
Starring the same people that broke us last time.
I’ll take what I can get with him. However, I am suspicious of the timing. Mortgage rates are going up, and would make the value of the current mortgage backed securities fall. Is he trying to get rid of it before it collapses again?
Guess who is the #2 recipient?????????
“——A government reinsurer of mortgage securities could backstop private capital in a crisis, the official said.-—”
Yup, our sorry, US Federal Government is stuck on stupid - - - - .
Isn’t ‘bundling mortgages’ a problem when investors ask the value of each mortgage in the bundle?
Pathetic that we ever had an economy fueled by housing of all things.
Remind me, is ‘Mark To Market’ book value or current market value?
Also remind me, are the Financial Accounting Standards Board guidelines the valuation based on a forced liquidation or a price in an orderly market?
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.