Comments on: Fannie Mae & Freddie Mac Takeover Imminent?

By: Steve Simon

Steve Simon — Mon, 08 Sep 2008 11:33:46 +0000

Fannie and Freddie, have been bailed out, its official, but its not enough…
September 8th, 2008
Over the weekend the two largest secondary market (where loans are bought and sold) players in history FNMA (Federal National Mortgage Association) and FHLMC (Federal Home Loan Mortgage Corp.) were officially bailed out and had their leadership axed for new Generals!

great if you’re talking about a quick fix, but not an answer that will work for the long term.

By the way the FHA is an insurance company, govenment but insurance, FNMA and FHLMC are secondary market providers they provide liquidity not insurance…
The answer is a quick fix, not a cure if you want to read a much longer explanation its the latest post onmy blog, you can find it you really want to
This was a simple solution, and whensimple solutions are used for complex problems those answers are usually incomplete…

By: Bill Lublin

Bill Lublin — Sun, 07 Sep 2008 20:55:57 +0000

OK, so now its offical -
@Brad – I gotta tell you if we can get the mortgage industry working as well as te Post Office, even with its challenges- I’m a happy guy-

@Al Perry – Looks like we have a new day – lets hope we have the dawn that goes with it

By: Bob

Bob — Sun, 07 Sep 2008 15:03:39 +0000

Starting any minute:
U.S. Treasury Secretary Henry Paulson and Federal Housing Finance Agency Director James Lockhart to release details of the planned conservatorship of Fannie Mae and Freddie Mac at an 11 a.m. press conference in downtown Washington.

By: Brad Nix

Brad Nix — Sun, 07 Sep 2008 14:45:38 +0000

I’m no expert in government-owned corporations, but I do know a little bit about the United States Postal Service (my father and step-mother are both local Post Masters). The government has owned or operated this vital service since 1776 and the USPS has operated as a “quasi-independent agency” since 1971. I know the Postal Service is not perfect, but it does work and I can’t recall a collapse due to lack of funds or mismanagement. Perhaps our government can provide similar management of Fannie and Freddie. Or perhaps I am just as hopeful as Bill.

By: Al Perry

Al Perry — Sat, 06 Sep 2008 23:21:59 +0000

Wow, I guess I have been waiting for this to happen since the beginning of the year. It will be interesting to see how the takeover plays out. I, for one, am choosing to be positive about this change. While I would be very suprised if the government is more efficient leading the two GSE’s, this may be a necessary step to a new begining. Hopefully Bill is correct and “dawn” is now in the near future. I like to say…give me the rules and I will play the game. Even if the government goes to extremes, it will be a welcome change to be able to identify the rules. I am confident that our industry and the clients we serve will land on our feet. Until then – FHA, FHA, FHA, all the way!

By: sheilabragg

sheilabragg — Sat, 06 Sep 2008 19:34:18 +0000

Fannie Mae & Freddie Mac Takeover Imminent?: Better get out of the feed reader and comment, Doctors m.. http://tinyurl.com/65m6pu

By: Mark Eibner

Mark Eibner — Sat, 06 Sep 2008 19:16:44 +0000

we're at it again Fannie Mae & Freddie Mac Takeover Imminent?: Better get out of the fe.. http://tinyurl.com/65m6pu

By: Chris Shouse

Chris Shouse — Sat, 06 Sep 2008 18:12:48 +0000

Jim I can not name one not one instance when the government has done a better job than the private sector.

By: Jim Duncan

Jim Duncan — Sat, 06 Sep 2008 15:36:33 +0000

Maybe (though this is a scary thought) the government will do a better job of running the companies as a government entity.The cynic in me says that would be a first, but I would love to know in the comments if a private sector company ever benefited by being converted to a government agency.

I feel the exact same way and see hope as masquerading as optimism, as the alternative – the utter collapse of the secondary market – creates consequences I cannot fathom.