Thread: Obama Wants New Model For Fannie Mae, Freddie Mac

Obama Wants New Model For Fannie Mae, Freddie Mac
by Kevin Drawbaugh and David Lawder

The Obama administration called for "fundamental change" at Fannie Mae and Freddie Mac, but a long, politically explosive debate lies ahead on the future of the bailed-out mortgage finance giants and U.S. housing policy.

U.S. Treasury Secretary Timothy Geithner on Tuesday raised basic questions with housing industry leaders about the U.S. government's long-standing role in subsidizing and supporting the $10.7 trillion housing market.

"It is not tenable to leave in place the system we have today," Geithner said at a conference hosted by the Treasury Department almost two years after the government seized Fannie Mae and Freddie Mac to save them from collapse.

Since then, the two firms have received nearly $150 billion in taxpayer bailout money and have been placed in conservatorship, sharply restricting their past activities.

"We will not support returning Fannie and Freddie to the role they played before conservatorship, where they took market share from private competitors while enjoying the perception of government support," Geithner said.

"We will not support a return to the system where private gains are subsidized by taxpayer losses."

The conference, with some of the mortgage sector's top lenders and investors, is billed as a "listening session" for the administration to gather ideas as it develops an overhaul plan by January. No major changes are expected before 2011.

"It's safe to say there's no clear consensus yet on how best to design a new system," Geithner said. "But this administration will side with those who want fundamental change."

With Congress focused on elections in November, federal spending coffers depleted and nerves on edge about changes that could trigger another housing crash, lawmakers looked likely to move slowly on overhauling housing finance, analysts said.

http://www.postchronicle.com/news/busin ... 7987.shtml

FYI
[quote]Rahm, Freddie and Fannie
By
Barack Obama’s choice for Chief of Staff, Rahm Emanuel, is not only a partisan hack, but he also was on the Board of Fannie Mae and Freddie Mac from 2000 and 2002. He was handsomely compensated. In case you haven’t heard, Fannie Mae and Freddie Mac are at the heart of the current economic crisis.

Contrary to popular belief, the economic crisis we face has nothing to do with “the failed policies of George W. Bushâ€

Ugh..Fannie and Freddie seriously helpless..

We will not support returning Fannie and Freddie to the role they played before conservatorship, where they took market share from private competitors while enjoying the perception of government support,

And I'm really not surprised they did this either. There needs to be total re-evaluation of all big corporations and immediate action too.

http://www.foxnews.com/politics/2010/06 ... eddie-mac/

http://www.gobankingrates.com/mortgage- ... borrowers/

Welcome to ALIPAC mandyjune.