Replies to post #182945 on Fannie Mae-No Politics (FNMA)

[tuzedaze]

Let the extortion begin..... can we fund this with some of the JP Morgan dollars that got paid out as part of the settlement for selling the bad mortgages?

[malebaboon]

This 1 billion request from Obama is a great start toward release from C-ship.

MB

[KingDMC]

Give me a break. Abuse of power. This administration is a joke. Crooks...

[955]

Many housing advocates argue the conditions that prompted the regulatory agency to suspend payments in 2008 no longer exist.

...and the conditions that prompted the regulatory agency to place the GSE's into conservatorship in 2008 no longer exist either. RELEASE THE HOUNDS!

No payments to affordable housing fund until release from conservatorship.

[obiterdictum]

White House wants $1 billion put in affordable housing fund

By Margaret Chadbourn
March 4, 2014

http://finance.yahoo.com/news/white-house-wants-1-billion-163000013.html

WASHINGTON, March 4 (Reuters) - The independent regulator for Fannie Mae and Freddie Mac should force the government-run companies to finance a federal affordable housing trust fund established by Congress six year ago, the Obama administration said on Tuesday.

U.S. President Barack Obama's fiscal 2015 budget proposal again calls for a $1 billion appropriation to capitalize the fund. If carried out, it would be the first contributions from the two mortgage finance firms since the National Housing Trust Fund was set up in 2008.

Over time, the White House predicted the money would provide for 16,000 affordable units using a mix of funding sources, including other public funds, tax credits and private debt.

Under the legislation that established the affordable housing fund, the companies were meant to be the source of capital. However, the previous head of the Federal Housing Finance Agency, Edward DeMarco, kept them from paying into the fund after they were bailed out by taxpayers at the height of the financial crisis.

Many housing advocates argue the conditions that prompted the regulatory agency to suspend payments in 2008 no longer exist.

A new regulator, Melvin Watt, took charge of the agency in January, but he has yet to say whether the companies should now move to capitalize the fund after a group of more than 30 Democrats in the U.S. Senate earlier this year called on him to do so.

Fannie Mae and Freddie Mac, which own or guarantee 60 percent of all U.S. home loans, were seized by the government in 2008 as mortgage losses threatened their solvency.

But they have since return to profitability, and by the end of March will have sent taxpayers $202.9 billion for their support, $15.4 billion more than the $187.5 billion they received bailout funds.

[bmp152]

If the conditions in 2008 that prevented capitalization of the housing trust funds no longer exist, then is it not implied that the same change in conditions should no longer shackle Fannie and Freddie to the confines of conservatorship?

[lubberboy]

Great article, thanks for posting it, it gives me more confidence than ever about Fannie and Freddie!!!

GO FnF!!!!!!!!