Fannie Mae-No Politics (FNMA)

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Democrats argue that a new system could be built using the best parts of Fannie and Freddie without destroying them! A bit of common sense pierces through the Congressional fog of hate and power.


Congress Takes Renewed Aim At Fannie Mae, Freddie Mac

by CHRIS ARNOLD<http://www.npr.org/people/2100196/chris-arnold>;

July 18, 2013 4:00 AM


ARNOLD: Critics of the proposal, though, say it would favor the biggest banks. They might get cheaper access to money and offer better rates, and so the big banks would get even bigger and that, in turn, might mean less competition and higher costs for home buyers. Another question: Nick Retsinas, an economist at Harvard University, wonders just how much private capital will step up and for what kind of loans.

NICK RETSINAS: The issue in the shadows lurking behind all these proposals is will we have a system that preserves the 30-year fixed rate amortizable mortgage, which has been the bedrock of housing finance in the United States.

ARNOLD: In other legislation, when Republican bill would dismantle Fannie and Freddie with much less of a government backstop,another bill expected from Democrats argues that a new system could be built using the best parts of Fannie and Freddie without destroying them . Chris Arnold, NPR News