Fannie Mae-No Politics (FNMA)

[955]

Get Gov out of the housing industry. No more "Homes for All" policies, Affordable Housing Goals, MANDATED QUOTAS for the poor and middle class. Gov has demonstrated they have NO KNOWLEDGE of this industry. THEY ARE INEPT when it comes to housing! Do we really want to be spending the next 10 years funding them with hundreds of billions of taxpayer dollars growing Gov to educate and increase their resources and control over American housing? If you want a feel as to how Gov runs a business, look no further than the US Postal Service which is bankrupt and billions in debt. Return housing finance back to the experts, public control where markets were already under optimal regulation. Relative to housing, can we really say we're better off now than we were 25-30 years ago? Are investors in housing safer now? Are housing risks to the economy lower?

A little history here. Thirty years ago, almost to the day, the Dept. of Housing and Urban Development PUSHED Fannie to lower down payments to 3%. Both Fannie and Freddie were PUSHED by the Clinton Administration and Congress beginning in 1992 to increase the number of mortgages sold to poor and moderate income homeowners, after the national media reported banks were redlining neighborhoods and not selling loans there.

Fannie and Freddie then stepped into low or no documentation loans, and later subprime mortgages, leading to their collapse. By 2011, Congress PUSHED for new rules instructing FHFA to adjust loan prices and guarantee fees to reflect market risk of losses, but critics argue the new programs appear to put those efforts in reverse.

http://www.foxbusiness.com/industries/2015/04/17/fannie-and-freddie-restart-risky-affordable-housing-programs/

"Will taxpayers be on the hook for another mega-bailout, given that Fannie and Freddie combined were the biggest bailout cases of all, at $187.5 billion? Though the two have paid back their taxpayer bailout, and then some, housing analysts have decried free, easy money as the reason for the housing meltdown, arguing, if borrowers can't afford a house, they should rent until they can."

http://www.foxbusiness.com/industries/2015/04/17/fannie-and-freddie-restart-risky-affordable-housing-programs/

"Though the two have paid back their taxpayer bailout, and then some."