FHFA changing the game
The Federal Housing Finance Agency (FHFA) aims to set goals for Fannie Mae and Freddie Mac that would target borrowers with lower incomes (at or below 80% of the area’s median, down from 100%) and give the agencies increased flexibility in measuring success. These goals would disallow them from buying home equity loans and Wall Street’s mortgage securities to prevent hazardous expansions to meet the FHFA requirements.
“FHFA does not intend for the enterprises to undertake uneconomic or high-risk activities in support of the goals, nor does it intend for the enterprises’ state of conservatorship to be a justification for withdrawing support from these market segments,” the FHFA said in a statement.
It seems like ever since Uncle Sam stepped into the scene to run Fannie and Freddie, everyone’s chomping at the bit to be a part of how it is run, take Barney Frank’s call for abolishing the agencies in lieu of whatever new agency he dreams up. HUD has vowed to step things up as have other organizations but we have to wonder, with HAMP being such a colossal failure, how much more “overhaul” can our system handle?
Real Estate Feeds
February 18, 2010 at 5:25 am
FHFA to Overhaul Fannie Mae & Freddie Mac?: FHFA changing the game
The Federal Housing Finance Agency (FHFA) aims … https://bit.ly/asvOjY
Joe Loomer
February 18, 2010 at 6:33 am
“….that would target borrowers with lower incomes (at or below 80% of the area’s median, down from 100%) and give the agencies increased flexibility in measuring success. These goals would disallow them from buying home equity loans and Wall Street’s mortgage securities to prevent hazardous expansions to meet the FHFA requirements…”
Disallow whom? The lower income borrower or Fannie/Freddie?
Navy Chief, Navy Pride
Lani Rosales
February 18, 2010 at 10:47 am
the agencies
Justin Boland
February 18, 2010 at 9:48 am
Sounds like PR noise. GSEs relaxed their standards to a dangerous extent in the past 10, but it’s not like they were the ones out originating these loans. Now, by Federal decree, they’ve taken on unthinkably huge portfolios of 100% bad mortgages and nobody in Washington, DC has any idea what to do about that.
Except, apparently, hope that the general public is ignorant enough to let them get away with blaming the agencies themselves. Woof.
No matter how cynical I get…
Lani Rosales
February 18, 2010 at 10:49 am
I said earlier this week that this is the year of the blame game and you and I are on the same page- there is a lot being set up right now (even though it’s after the fact) that will allow politicians to finger point to faceless agencies because of all of this spin. Should be interesting.
Mike
February 18, 2010 at 1:01 pm
There is plenty of blame to go around. If HUD sec Cuomo didn’t allow the purchase of the risky loans, there wouldn’t have been a market for them. That was a big mistake. I’m a Capitalist, I’m all for keeping the government out of free enterprise as much as possible. It’s obviously much too late now. Hopefully we, as a Country, will learn from our mistakes.
Nicole Mickle
February 18, 2010 at 4:20 pm
FHFA to Overhaul Fannie Mae & Freddie Mac? https://ow.ly/18xZc
BHG Real Estate
February 18, 2010 at 4:55 pm
FHFA to Overhaul Fannie Mae & Freddie Mac? https://ow.ly/18F3O
Seb Frey
February 23, 2010 at 10:48 am
Article: FHFA to Overhaul Fannie Mae & Freddie Mac? https://bit.ly/9601BE #realestate #mortgage #fanniemae #freddiemac #santaclaracounty