Fannie Mae-No Politics (FNMA)

[mike_usa]

One of the comments by one of the readers,yaquino on
http://timhoward717.com/2014/07/02/bill-to-keep-fannie-and-freddie-alive/#comments


“Winding Down Fannie and Freddie”
“The Director of the FHFA will oversee the discontinuance of the Enterprises’ ability to issue, guarantee, or purchase any mortgage-backed securities.
After the Ginnie Mae platform is established, the Enterprises will operate as one of the several anticipated monoline insurers and one of the several anticipated private reinsurers for a five year period.
By the end of the five year period, the FHFA Director will ensure that the total market share of mortgage-backed securities insured by the Enterprises in either of these capacities will not exceed 30 percent of the total market share.”
The above statement was issued by Delaney et al on their proposed bill. It implies to wind down the share of GSE of 90 percent in the current MBS market but not not to wind down the GSE. It is explicit that they must retain 30 percent of the market market share which is their market share during the pre crisis. The bill implies they have to release FNF from conservatorship, because it is the only way they will be able to exist, raise capital and be able to return ownership to private investors. It is implied by this bill that if we,politicians will allow the court to decide on what to do on GSE based on the current lawsuit in judges sweeney and lambert, this will exposed both republicans(use of GSE to save Wall Street ) and democrats (2012 sweep amendment) abuses and disregard for economic and financial laws. This is what Tim was saying all along that republicans and democrats must change their heart, in bashing and winding down of GSE or else they will be washing their dirty linen in public through the court system.
Tim, thanks for leading our continuing vigilance to preserve the American justice system. Keep the faith!!