Rocky Road Ahead for US Mortgage Giants

The players Fannie Mae and Freddie Mac well not again these two in the news one more time – we are tired of reporting the woes of these two very badly managed and regulated companies

Here is clip comment from NPR – National Public Radio – quote – A lack of stability in home prices has made it more difficult for the Obama administration to curb government’s role in the country’s mortgage-finance giants.

The Obama administration was supposed to offer a restructuring plan for mortgage giants Fannie Mae and Freddie Mac by Monday, but the plan has been delayed at least until mid-February as policymakers struggle to define what the future of mortgage financing should look like.

It probably won’t look like Fannie and Freddie. Before their takeover, the two existed in a kind of grey area: independent, for-profit companies to finance home mortgages, but with an implicit guarantee that if they got into trouble, the government would bail them out. It was a recipe for trouble.

“You can be a private company and you might succeed and make a fortune or you might go broke and lose everything. That’s fine,” said Alex Pollock of the American Enterprise Institute. “Or you can be part of the government. But you can’t be both at the same time.”

‘Maybe an appropriate description of Fannie Mae and Freddie Mac is a SHAMBLES!’

Read the full clip here

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