Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Great find, Navy! They say alot of good stuff, but their quest for an EXPLICIT Government Guarantee is NOT in the Government's best interests because the IMPLICIT Guarantee that has been in place for the last 45 years works and doesn't cost the Federal Government a dime.

"For the good of the American housing industry, the FHFA and the Treasury must follow HERA and return the GSEs to private ownership."

"Understandably, that means that appointees tend to follow policies that track the political party in power — zig-zagging back and forth with each administration. Moreover, under the conservatorship, FHFA has enormous powers to implement specific policies for Fannie and Freddie."

"In fact, this was never the route intended by Congress when it passed HERA in 2008. Instead, HERA explicitly provided guidelines for FHFA to take the GSEs out of conservatorship."

"But ultimately FHFA has the authority — even a duty — under HERA to take the GSEs out of conservatorship, working with the Treasury which holds its preferred stock."

"Fannie Mae and Freddie Mac are far too important to homebuyers, our economy and the housing and mortgage industries to be left in limbo indefinitely. FHFA and the Treasury should release the GSEs from conservatorship as soon as possible. There is too much at stake to maintain the status quo."