Freddie Mac-No Politics (FMCC)

[G-old-leader]

IF the GSE go away...
Banks have fewer loans to lend based on limited supply of money in there vaults, interest for mortgages and prime rates will explode...(Fewer loans In accordance with supply vs demand)like in the Reagan Days. Folks will be capped out on there adj secured loans. to get a new HELOC's based on prime rate, will be December 19, 1980. 21.50 (U.S. Prime Rate record high)
Up to 18 % for the fix 30 loan like 1982
A payment Just fully AMORT would be over 3k a month on 200k without impounds (property taxes and insur)
N=360 I/YR=18% PV=200,000 PMT=$-3,014 FV=0

Vice

N=360 I/YR=3% PV=200,000 PMT=$-$843.21 FV=0

Properties will crash again because no one will be able to buy that 200k house on their salary.

Recession...? You say, people will start jumping off buildings if the president gets his way about eliminating F&F.

Its never going to happen, the current system needs just some tweaking and better lending and that's pretty much a wrap !!!