Replies to post #88812 on Fannie Mae-No Politics (FNMA)

[TheFinalCD]

nice post!

[prox]

New capital ratio requirements put high credit quality MBS securities at 20%. That is high quality. FnF are running a book of 5 trillion dollars. At a minimum they need to raise 1 trillion dollars, at a minimum. 500 billion is way below estimate of what private capital needs to raise.

[AncientAries]

Agreed 110%, I have over 15 years in the lending, Real Estate business. Also, degree in Finance. I am well aware why they exist and you are correct. Sky rocket interest rates like the 80's when 13% fixed was a good rate at the time and house prices stayed the same for nearly 15 years, yes that long its crazy. Main Street needs to know these facts, if they keep believing the lies then we are doomed because they are votes to the politicians, the public wants justice and blood, they are just mislead to whom that justice needs to be directed towards, BANKS.

[stockholder0001]

Great post!

Prior to setting up GSEs, in early 1930s the government actually tried to find private capital to provide financing to the housing market. Back then, mortgages were 4-5 years loans. There was NO private capital willing to step in to do what GSEs do.

Are we ready to go back to getting 4-5 years mortgages with balloon payments? Not at all...