Fannie Mae-No Politics (FNMA)

[HappyAlways]

If we need to move forward, we need to know why they (mainly the senators) still want to replace Fannie & Freddie. IMO, FnF model is well proven and extremely cost efficient. They were unnecessarily placed under C-ship to buy time to bailout the TBTF banks. George Bush said it was a temporary measure to calm some nerves. Paulson said it was a time-out. The main root cause was FnF were forced to take on a fixed % of low-income family housing loans (i.e. the sub-prime loans). That gave the TBTF banks to dump bad mortgages to them.

Anyone has any idea ?