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Hensarling Bill to Wind-down GSEs Gets Wind-down of Its Own
POSTEDBY THOMAS GODDARD
According to multiple sources, including Inside Mortgage Finance, Hensarling's bill, which called for the wind-down of the GSEs, is no longer on the agenda for the foreseeable future. This is great news for taxpaying shareholders and brings us one step closer to a practical, sustainable, and safe solution. This also means that the nation is one step closer to protecting American taxpayers, as well as the National Housing Trust Fund, since the key stakeholders involved in GSE reform are now being heard. Hensarlings bill would also have other, negative, sweeping impacts on American families, businesses, and homeowners, such as eliminating the 30-year fixed rate mortgage, increasing interest rates, and providing full control to big banks, which might later lobby for the ability to lend customer's deposits to other customers with much higher interest rates. In addition, the bill would increase risk to taxpayers by placing the primary responsibility of lending, securitizing, and backstopping mortgages in the hands of the too-big-to-fail (TBTF) banks.
Senate majority leader, Harry Reid, has hinted at prospects for a bill that would maintain Fannie and Freddie's role in America's future housing finance system in an interview with Nevada Public Radio last month. As Corker/Warner loses traction in the Senate, and new bills present more pragmatic solutions to a safe, stable, housing finance system, we should begin to see a slow but healthy entrance of private capital to work alongside Fannie and Freddie -- as many, such as Bank of America, have stated is the most desirable structure. As Fannie and Freddie quickly approach zero debt owed to taxpayers -- it does appear likely that a transition from conservatorship back to a pre-crisis, pre-subprime, #GSEReform is approaching. This is what Barack Obama alluded to in his talk with Zillow's CEO last month, which appears to align nicely with all of the key stakeholders. Stay tuned for some statistics as we approach net-zero (zero debt owed by Fannie and Freddie to the US Treasury).
Remember these names: Maxine Waters & Mike Capuano
H.R. 2435: “Let the GSEs Pay Us Back” Act to give Fannie Mae and Freddie Mac, which are Government Sponsored Entities (GSEs), a mechanism to repay the money that they owe Treasury. During the 2008 financial crisis, they received $187.5 billion in taxpayer funds to stabilize their operations. Now,fees paid by middle-class homeowners to the GSEs are turned over to Treasury to pay down this debt. By the end of this month, Fannie and Freddie will have returned almost $132 billion to Treasury. While this represents 70% of their total debt, NONE of it is counted towards the money owed to taxpayers for the bailout. Unless something changes,average homeowners will continue to be forced to make payments toward a debt that never budges.
Originally, the two entities were required to pay quarterly dividends to Treasury on the borrowed funds. In some quarters, Fannie and Freddie didn’t have sufficient funds and had to borrow from Treasury in order to make their dividend payments to Treasury. Last year,Treasury changed the agreement to fix this. Instead, Fannie and Freddie are now required to return any and all quarterly profits to Treasury. But if all of their profits are turned over to Treasury and counted as dividends, they can’t accumulate enough funds to pay down their debt.
Not counting the GSEs’ payments towards the principal that they owe represents outrageous usury on homeowners. If any other creditor refused to reduce the balance of a paying consumer, we would never tolerate it. AIG, GM and others were given the opportunity to pay back their debt from the financial crisis – and the U.S. has profited from these loans. Fannie and Freddie, and by extension homeowners, should have the same chance.
The GSEs’ payments should also not go towards reducing the national debt as this is a burden to be borne by all Americans. Homeowners should not be forced to pay more than their fair share in the process of national debt reduction.
My legislation requires a new agreement to allow payments that Fannie and Freddie make to Treasury to count towards paying down their debt. It will help make taxpayers whole on the money borrowed and will stop homeowners from being treated as piggy banks. Instead, I hope this bill will provide incentive to hasten reform of Fannie and Freddie. America needs affordable mortgages for average people and strong, safe agencies to provide them.
My calculation says PPS between 150-170$
http://www.cnbc.com/id/101018586
Keep sleeping
Second no ;)
Much better 49,90
no worries, double digits just turning the corner
next to acquire my own private jet,tired from airline career...
Perhaps he says in order to stop shorts play for once... Don't try to be clever than the one investing billions here.
Wait jajaja
Ready for 2$
I am sure someone is going to tell you what c-ship is (literal meaning), but let me go far away, it has became a sham from politicians. The goal from c-ship is to recover independency, solvency... Is FHFA ready to tell me why c-ship is not disabled if GSE's have dropped 140 billions to U.S. Treasury? Are you american, rusky, cuban or chinese?
No politician in U.S. is going to break this mortgage system and fingers pointing him/her. It's not a pleasure to be known as the president from atomic bomb like Truman or the Watergate's one as Nixon... Neither the one who broke 70 years mortgage entities and carry the country to the deepest crisis ever seen. IMO
loaded more FMCC today at 1,28 come on skyrocket...
You forget something, they are in c-ship, not receivership.
it's not a miracle but the right way
jajaja 100k more
Added 100k more, my bag has 600k
Very clear buddy, blind not to see that, sorry for those selling...
do you think is logical OTC stock with 10billion earnings... This is mafia.
time to buy 100k more
jajajaja this is the perfect end for a week-end
Only the penitent will pass c–ship
Read it all again, think you didn't get the important facts and good reasons to stay here... LONG FnF.
I don't mind, read comments from those who read it, you are a clown
Need to read completelly:
http://www.restorefanniemae.us/aei
Not really.... FNMA used DTA, so FMCC will do, IT IS VIRTUALLY NET ZERO ALREADY.
I think people must remember last words from the president, reprivatize, REFORM to CARRY ON helthy, but not WIND DOWN...
Just one thing, FMCC has not yet executed 30billion deferred tax assets, so virtually he has achieved net zero right now, 41 + 30 are the 71 from bailout
And I think you are not believing your own words...
shorts are pissing right now, or something else...
And FMCC 5 billion, short difference, seems FMCC more efficient on its operations, don't you think?
Buddies, are you ready to get rich?
Fifty million dollar in sight!
Personal decission buddy, you know. However, I think now it's risk zero to buy IMO