Fannie Mae-No Politics (FNMA)

[chessmaster315]

Even worse, Senators want to punish the American people for what fannie lobbyists did 10 years ago, by putting our economy in a deep recession where only 10 percent of people can buy a home or sell their home.

Most homes will wind up in foreclosure because only 10 % of people can now qualify for a mortgage..they wont have the down payment..20%..they wont want the ballon note in 10 years because the 30 year mortgage dies with fannie.

Its horrifying to think what will happen when Americans can no longer buy or sell their home because financing it will be too hard or simply out of reach.

Right now, banks dont mind makeing fannie loans. They can buy and sell fannie mortgages as if they were treasury bills. They need not worry about the 30 year, they can simply sell them.

Absent a government guarntee on the loan, other banks or investors dont want a mortgage written with another banks standards.

Killing fannie mae is like throwing a nuclear weapon on our economy. Fannie shareholders will just be ONE of the many "collateral damages". Homeowners will be another. Realtors. Title insurance companies. Home inspections and repairs. The list goes on and on.