Lawrence Yun Talks About Fannie & Freddie
National Association of Realtors’ Chief Economist, Lawrence Yun talks about the Freddie & Fannie debacle noting the “confusion in their public mission” between their for-profit motives regarding shareholders possibly conflicting with their public mission of making credit available in times of crisis.
“What the policy makers need to really consider once we go to move past this crisis is to possibly implement some type of counter-cyclical housing policy, make mortgages available in times of crisis and perhaps restrain mortgage credit availability when the market is heating up.”
The video provides a great deal of market data and Yun addresses the backwards nature of Fannie Mae and Freddie Mac:
August 27, 2008 at 10:48 am
Yeah, Fannie and Freddie have some very conflicting motivations. They like to talk about their more benign role of being created to help provide affordable housing, but the truth is they’ve run themselves more like massive overly leveraged hedge funds (trying to maximize their executives bonus’) the last few years.
August 27, 2008 at 12:01 pm
That was a heck of a lot of information piled into just a few minutes. I need to see that again. Thanks for giving me a heads up on it. I’m trying to gather all the info I can.
August 30, 2008 at 1:16 pm
This is only my opinion and I am entitled to it:
I think this fellow yun is either paid so well he will just say anything that his handlers tell him to say. Which says alot about his lack of credability and his lack of integrity; o he is really very stupid.
This guy was saying more than a year ago that this would be (paraphrase) a short-lived down turn and things look good to turn around by early 2008!
If the National Association wants my dues money they have to plan on spending it better than that.
His comments are laughable in the face of the numbers (look at inventory!, look at the percentage of lender sales!).
Even the guy that writes his stuff can’t believe it…
Just my thoughts
Also almost a year ago i was predicting the “Perfect Storm” and was right on for my areas market.
In addition his statement about the numbers not reflecting all the upside is almost just plain fabrication. The Association should be ashamed of this level of supposed expert commentary.