Fannie Mae-No Politics (FNMA)

[truedat]

Your Answer/Understanding/Reasoning is Rubbish...

Paragraph 1, you state FNMA doesn't provide mortgages; it isnt the originator of the mortgages. (Banks complete the mortgages then sell the 'paper' to FNMA)

Paragraph 2, you said people that 'qualified' for loans before the bubble burst really couldn't afford them. So you DO understand that the BANKS gave mortgages to unqualified people then KNOWINGLY resold those worthless 'papers' to FNMA to get them off their book so they don't have the worthless 'papers' when they explode. This was done when the Gov't force FNMA to accept the worthless 'papers' because the Gov't feared that if the public knew the actual condition of the banks the economy would've been in a worst state.

Rubbish. Fannie Me provides no mortgages to anybody. A GSE does not originate any mortgages, nor has it ever. Fannie buys up the bank paper and resells it as MBS with an implied backing of the government.

Most of the people that "qualified" for loans before the bubble burst really couldn't afford them in the first place. And what was the scam of sub-prime loans continues in different dress, today, with conveyances like HART that aren't much better.

Releasing the GSEs and changing nothing else is an express train to another housing collapse and recession-or-worse.