Closing down Fannie and Freddie

[einhander]

Senate set to vote on winding down Fannie Mae and Freddie Mac over five years. Scheme would see their functions replaced by more focused lenders, with leaner operations.

From what I can tell, one bill under debate is going to give government responsibility for huge housing market losses, but rely on private institutions to buy the mortgage securities to sell to investors (what F&F do now).

I admit to not knowing much about this - I don't own a house and don't want one - but it seems like it will cause the cost of mortgages to go up, while at the same time exposing taxpayers to more risk?

On the other hand, mortgage backed securities are horseshit and with F&F finally nearly repaid for their bailout money, I'd be happy to see them shutdown.

Any thoughts?

[mrsleeve]

good riddance why should the govt be in the mortgage biz any way. What about Ginny mae


Didnt Fank/Dodd basically put the tax payer and the Feds on the hook for the whole last sub prime fiasco???

[Eric]

I admit to not knowing much about this -

I'm in the same boat, but I cannot believe this government (not directed at obama, I'm throwing all of them under the bus) would loosen their reins on any form of power/money.

I'm sure it will just be a handshake to another entity that will run the same scheme under a new guise.

[mrsleeve]

^


THAT is whats going to happen for sure