Replies to post #319478 on Fannie Mae-No Politics (FNMA)

[955]

Excellent point. NOBODY adds liquidity to the mortgage market like Fannie & Freddie can, NOBODY, not even close. ALL HOMEOWNERS should be outraged at the mere prospect of reducing Fannie & Freddie's business model. With reduced liquidity, HOME VALUES GO DOWN. Why is OUR Gov removing wealth from it's citizens??? Does this not have a direct NEGATIVE impact on OUR economy?

Cival Rights groups demand Obama release fannie and freddie:

@ezraklein Is Vox covering Fannie and Freddie? Civil rights groups are rallying behind them, here's why: https://t.co/WoHbpBjAWN

— Trevor Thompson (@westernmassvote) October 30, 2015

This is a utube video, which blames the problem on Republicans. While I dont agree its all the Republicans fault, I still like the idea that they should be released. Further, I agree that it is the very poor who need fannie the most. Rich people can put down 20% so they dont need fannie. However, these rich people want to move also, and they need to be able to sell their homes.

[AncientAries]

Chessmaster, even putting 20% down you can still go Fannie Freddie, it's not only for low income borrowers, you have the option to waive escrow, pay them on a yearly basis, on P&I are paid to F&orF or the check actually goes to he servicer be it Chase, BofA, Wells Fargo, the handle the billing for a fee to the holder.
Honestly, FHA, exists for those that need that low down, you can put up to 10 people on that application, see FHA is for those that can't qualify via F&F guidelines, ratios are set higher to give flexibility to the borrowers but PMI for the life of the loan sucks, especially at the rates today.
Super wealthy use Fannie or Freddie as well, or if it passes confirming limits 417k then it's a jumbo portfolio loan held on the books of that lender or bank, which could be pooled and sold on the secondary market, but that is not F&F of course.

[cfljmljfl]

The very poor people have tax supported HUD that provides housing. Did they bankrupt that agency?

[Donotunderstand]

I think you are confusing FHA with FNMA

Other than specific programs and limited numbers - FNMA requires either 20% down or 10% and PMI to buy the paper

FNMA does not lend (FHA is does I believe) and banks do not expect to sell loans to FNMA other than those that meet solid underwriting criteria

There are exceptions but they are limited in time and number

[detearing]

FnF Civil Rights Issue...absolutely.

[big-yank]

Of course you know that the source for most of this minority housing concern as a rationale for recapitalization and release of the GSEs is the work of a college student? I certainly hope our Judges consider sources with more extensive experience before letting a student reinvent our housing industry for a term paper.

https://drive.google.com/file/d/0B58sMbhyeWL2dEFxQmVtcV8xNk0/view?pli=1

Seems like a very bright young man.