How many critics of Fannie Mae and Freddie Mac have a true understanding of the Secondary Market, and how Fannie/Freddie make money available for Lenders to lend to Home Buyers?
Fannie Mae and Freddie Mac were doing just fine until Congress, the Administration, and the Big Banks/Wall Streeters starting using Fannie and Freddie to make personal fortunes and further their political agendas!
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THE SECONDARY MARKET PROVIDED BY FANNIE/FREDDIE.
Be careful what you ask for!!!
The secondary market provided by Fannie/Freddie have been crucial to the real estate industry and the economy of the United States.
The failures of Fannie/Freddie was not due to a systemic failure of their MISSION, to provide liquidity for mortgage originators.
This post inspired by Conrad Allen in 58.7 BILLION DOLLAR PROFIT BY FANNIE MAE
THE FAILURES OF FANNIE/FREDDIE (IMO) WAS CAUSED DIRECTLY BY:
POLITICAL CRONYISM (Franklin Raines),
Perfidy of the Wall Street Gangs(Securitization of Mortgage Backed Securities),
Perfidy of the Credit Rating Agencies (Credit rating agencies failures in the sub-prime market), and
The total failure of Congress to DO THEIR JOB.
How many who criticize Fannie/Freddie, have an understanding of the secondary market and how Fannie/Freddie make money available for lenders to lend to consumers.
Fannie/Freddie were just fine doing their job before Congress/the Wall Street gangs, etc. decided to make personal fortunes and further their political agenda by using Fannie/Freddie.
It would be smart before any more tinkering or elimination of Fannie/Freddie to consider the consequences.
Government is very good at acting and then observing the consequences.
Government is very bad at considering consequences before acting.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, serving home buyers in Loudoun County VA.
SEE Articles on The Mortgage Mess.
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Frederick Griffin, Licensed Florida Real Estate Broker 850-545-1901
Tallahassee Florida Metropolitan Area
Exclusive Representation for Buyers and Sellers
Call Fred 850-545-1901
Frederick Griffin, Licensed Florida Real Estate Broker 850-545-1901
Disclaimer: Nothing in the above blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.
