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FHFA to Overhaul Fannie Mae & Freddie Mac?

FHFA changing the game

setting goalsThe 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?

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Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

16 Comments

16 Comments

  1. 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

  2. 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

  3. 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.

  4. 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.

  5. Nicole Mickle

    February 18, 2010 at 4:20 pm

    FHFA to Overhaul Fannie Mae & Freddie Mac? https://ow.ly/18xZc

  6. BHG Real Estate

    February 18, 2010 at 4:55 pm

    FHFA to Overhaul Fannie Mae & Freddie Mac? https://ow.ly/18F3O

  7. 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

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