NAR believes that Fannie Mae and Freddie Mac should be replaced by a shareholder owned, government-chartered private utility(s) that is subject to tighter regulations on product, revenue generation and use, and retained portfolio practices in a way that ensures competition, innovation, and most importantly the mission of the GSEs continues to meet the needs of consumers and the taxpayer is protected. This would severely restrict, if not curtail, home sales and any supporting ancillary home sales services. Without the government’s support of the GSEs and FHA-insured loans, which currently constitute a large portion of the market space, there would be limited capital available for mortgage lending. During the housing finance sector's collapse, private capital withdrew from mortgage markets having a significant, competing role with the GSEs. What does this mean for my business?įannie Mae and Freddie Mac play a key role in the secondary mortgage market, which is crucial in providing capital for mortgage lending. FHFA explained it took this action “to help restore confidence in Fannie Mae and Freddie Mac, enhance their capacity to fulfill their mission, and mitigate the systemic risk that has contributed directly to the instability in the current market.” The conservatorship continues today. On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs) into conservatorship.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |