Jump to content
Sign in to follow this  
I AM NOT THAT GUY

Obama housing plan to end Fannie, Freddie

4 posts in this topic

Recommended Posts

Fannie Mae and Freddie Mac would cease to exist under the housing plan released Friday by the Obama administration.

The highly anticipated report lays out a vision for ultimately winding down the troubled government-sponsored enterprises by inviting private dollars to crowd out government support for home loans. It lays out three options for the nation's housing market after Fannie and Freddie are wound down, with varying roles for the government to play.

It comes in response to a housing crisis that nearly brought down the financial system and ushered in the worst recession in a half-century.

"Our plan helps ensure that our nation's economic health will not be jeopardized again by the fundamental flaws in the housing market that existed before the financial crisis," the report from the Treasury Department and Department of Housing and Urban Development states.

Going forward, the report says, the government's role should be limited primarily to oversight and consumer protection, though it would continue to provide some targeted assistance to the housing market. It would fall to private institutions to be the primary source of mortgage credit and "bear the burden for losses."

"We are going to wind down Fannie and Freddie and gradually, but substantially, reduce the government's broader footprint in the housing market" said Treasury Secretary Timothy Geithner Friday. "We think there’s very broad consensus both on [Capitol] Hill and within the broader housing finance community about the need for a transition to a much smaller role for the government."

However, the plan rejects the notion of a housing system where the government does not assist low and moderate-income borrowers. Some Congressional Republicans had advocated for a wholly private housing system, with no government influence.

http://thehill.com/blogs/on-the-money/banking-financial-institutions/143445-administration-housing-plan-no-more-fannie-freddie

Share this post


Link to post
Share on other sites

Fannie Mae and Freddie Mac would cease to exist under the housing plan released Friday by the Obama administration.

The highly anticipated report lays out a vision for ultimately winding down the troubled government-sponsored enterprises by inviting private dollars to crowd out government support for home loans. It lays out three options for the nation's housing market after Fannie and Freddie are wound down, with varying roles for the government to play.

It comes in response to a housing crisis that nearly brought down the financial system and ushered in the worst recession in a half-century.

"Our plan helps ensure that our nation's economic health will not be jeopardized again by the fundamental flaws in the housing market that existed before the financial crisis," the report from the Treasury Department and Department of Housing and Urban Development states.

Going forward, the report says, the government's role should be limited primarily to oversight and consumer protection, though it would continue to provide some targeted assistance to the housing market. It would fall to private institutions to be the primary source of mortgage credit and "bear the burden for losses."

"We are going to wind down Fannie and Freddie and gradually, but substantially, reduce the government's broader footprint in the housing market" said Treasury Secretary Timothy Geithner Friday. "We think there’s very broad consensus both on [Capitol] Hill and within the broader housing finance community about the need for a transition to a much smaller role for the government."

However, the plan rejects the notion of a housing system where the government does not assist low and moderate-income borrowers. Some Congressional Republicans had advocated for a wholly private housing system, with no government influence.

http://thehill.com/blogs/on-the-money/banking-financial-institutions/143445-administration-housing-plan-no-more-fannie-freddie

Being that the housing market has had government involvement since the 1930's, pulling out now would have effects across the entire housing market.

Being that a majority of homeowners get government backing/support to afford their mortgage, its going to get more expensive to borrow, and utimatly result in a decrease in home ownership. Not that this is bad, I think that the US has more people owning homes than is economically sustainable. But the transition away from government support of home ownership is going to cause negative effects across the entire housing market.

Edited by Dan + Gemvita

keTiiDCjGVo

Share this post


Link to post
Share on other sites
 

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×
×
  • Create New...