Fannie Mae-No Politics (FNMA)

[chessmaster315]

Correct. If "private investors" wanted to do low down payment 30 year fixed low interest rate mortgages, they could be doing exactly that right now!!!

Even banks dont want those..that is why they sell them to fnma, and why fannie owns trillions of dollars of mortgages.

The legislators automatically assume there will be private investors to fill the void upon fannie's exit...this is a false assumption. Private investors can, but wont, lend their money at 4 percent with a low down payment fixed 30 year loan.

Investors, however, will buy those up, with a government guarntee..this means they can sell that paper like it was a tbill.

When the government guarntee goes away, so does the 30 year low down payment fixed rate low interest mortgage.