Posted on 12/14/2011 2:22:08 PM PST by JNRoberts
Yep. Something has been around for 50 years. Therefore, its existence is essential and life would have been grim without it. There is just no alternative that would have been acceptable. As my sister used to say a lot when we were kids: “dumbest thing I’ve ever heard”.
>>>There are plenty of institutional investors who are willing to buy solid mortgages. The idea than only GSE’s can do it is ridiculous.<<<
LOL...right. The Secondary Market is just flooded with investors who are in the market to buy 30 year fixed rate whole loans and be willing to hold them in their portfolio to maturity. And at the price the GSE’s do it for.
You must run a Secondary Marketing Department for a Mortgage Banker right?
This thread reveals the utter ignorance and stupidity of many Freepers when it comes to Mortgage Banking.
>>>Yep. Something has been around for 50 years. Therefore, its existence is essential and life would have been grim without it. There is just no alternative that would have been acceptable. As my sister used to say a lot when we were kids: “dumbest thing I’ve ever heard”.>>>
You remind me of Michael Moore, the Fat Slob who said when asked what system is better than Capitalism, “We’ll invent one.”
Go ahead, invent and create a system of Mortgage Finance and liquidity and efficiencies that will match Fannie’s record of almost 70 years of providing the liquidity and backbone for the engine (Housing) of the greatest economy in world history and do it at no cost to the tax payer for the majority of those 70 years and would have kept doing it had the Democrats not taken over it.
I reminded you of your sister, you reminded me of Michael Moore.
Are we talking about F&F or Social Security? Two seemingly great ideas, rotten at the core in reality, that took 70 years of moral hazard to drag a great nation down. Just think of all those homes that never would have existed without F&F. Just think of all those old people that would have starved in the snow bank without SS. Oh, but they would have worked fine if the party that was responsible for them, and controlled congress for the vast majority of the time they have been in existence hadn't taken them over. That's funny. "No cost to the tax payer". Seriously, man. You're killing me.
Nobody would have ever have figured out how to build and finance a house, without a benevolent hand forcing the participation of the funders at the barrel of a gun, just like nobody would have ever found a way to care for grandma without the same do-gooder forces. For 70 years we've had some seriously pampered oldsters. What's not to like?
That week of living large would have never come to an end if we hadn't run out of blow, and the stolen money we bought it all with. The whole thing blew up, we are broke and sick from over indulgence and twisted priorities, over a long period. But dammit, that was the greatest binge "in world history".
LOL...right. The venture capital market is just flooded with investors that are in the market to invest in and loan to great start-up solar panel manufactures in the Bay Area. And at the price the GSE's Energy Department will do it for.
This thread reveals the utter ignorance and stupidity...
No. Just a little silliness from somebody that maybe tipped a few too many before deciding to inform the world about something they couldn't possibly know.
Anybody can do it. Watch: If Steve Bartman had gotten a flat tire on the way to Wrigley Field, the Cubs would have been champs. You people that disagree are ignorant, if not stupid. See? It's easy.
The fact that the US Gov't just had to give ANOTHER $6 Billion to F&F to cover their loses shows that the GSE's were dumb@sses about pricing and risk. Maybe GSE's do it so cheaply (too cheaply) - because they are subsidized by taxpayers. Their implicit guarantee (now explicit) which allowed them to price so cheaply has really come back to haunt us.
Also, Why do you fixate on 30 year mortgages as the holy-grail of mortgage lending? Who cares? Maybe 30 is too long. Maybe its not long enough. We don't need apparatchiks who are sleeping with Barney Frank to tell the market the ideal tenor of loans.
From a practical standpoint, I think most people would like to see that "nirvana" functioning again. My personal opinion is the 30 year fixed allows for people to become debt slaves. Everybody that feeds off the housing market probably wouldn't agree with that assessment.
If it weren't for the FHA back stopping loans to people that can't afford them, the housing market would likely be closer to a bottom. People would be able to purchase homes with 15 and 20 year loans..
Why can’t I go to the Fed directly and get some phony bologna fiat money, say $300,000, at 0.2% interest? Eliminate the middle man.
>>>>The fact that the US Gov’t just had to give ANOTHER $6 Billion to F&F to cover their loses shows that the GSE’s were dumb@sses about pricing and risk. Maybe GSE’s do it so cheaply (too cheaply) - because they are subsidized by taxpayers. Their implicit guarantee (now explicit) which allowed them to price so cheaply has really come back to haunt us.>>>>
The GSEs were never subsidized by taxpayers until Barney Frank and the Dems forced them into making loans to people who couldn’t afford it. The model worked for almost 70 years. Deal with it.
>>>Nobody would have ever have figured out how to build and finance a house, without a benevolent hand forcing the participation of the funders at the barrel of a gun, just like nobody would have ever found a way to care for grandma without the same do-gooder forces. For 70 years we’ve had some seriously pampered oldsters. What’s not to like?>>>
Another genius who thinks the model that worked perfectly for over 70 years and no doubt benefited him, his mommy and daddy and was the very foundation of maintaining a stable and strong housing market, the ENGINE Of the US economy , and did so for over 70 years.....thinks it was a bad idea.
Another Genius who will be the first to look for his social security check in the house he couldn’t have got without Fannie. Ignorance is bliss though.
>>>Why can’t I go to the Fed directly and get some phony bologna fiat money, say $300,000, at 0.2% interest? Eliminate the middle man.>>>
Such a practical idea. And the Fed can process the loan, underwrite the loan, inspect the property, and perform the hundred other tasks required to close a home.
Such geniuses here!
>>>>The venture capital market is just flooded with investors that are in the market to invest in and loan to great start-up solar panel manufactures in the Bay Area. And at the price the GSE’s Energy Department will do it for. >>>>
A genius comparing solar panels with the inherent interest rate and credit risk of a 30 year fixed rate mortgage, not to mention the engine of the US economy, the housing market. Wow....smart guy. I’m so impressed.
Ok so this is the system as I see it. The Fed basically gives a bank free money. Then the bank loans the money out, and yes they have a few paper pushers and processors and expenses, most of the expenses are paid by the person getting the loan. Anyone with a high school education can process a loan. Add subtract multiply are keey skills LOL.
For that trivial service, the bank gets to collect 5% for the next 30 years? Come on we can do better.
>>>Then the bank loans the money out, and yes they have a few paper pushers and processors and expenses, most of the expenses are paid by the person getting the loan. Anyone with a high school education can process a loan. Add subtract multiply are keey skills LOL.>>>
Clearly another genius with an in-depth knowledge of the origination, processing, underwriting, closing, selling, servicing, and accounting involved in the mortgage finance business.
Oh yeah rocket science. LOL. You have a real inflated idea of what "value added" means.
>>>Oh yeah rocket science. LOL. You have a real inflated idea of what “value added” means.>>>
The peanut gallery speaks again.
“Until Fannie was started up, home ownership was well under 50%. Your community banker isn’t going to loan money for 30 years because of the interest rate risk. The 30 year would probably disappear in favor of ARMs if GSE’s weren’t around..”
Yep, and home ownership is now over 50% and the economy collapsed because trillions were loaned to new home “owners” who never had a chance of paying the loans back, and now we have millions of repossessed houses on the market, with prices massively depressed for everyone else who’s sill managing to hold onto a house, a 10 year hangover of housing inventory, Obama elected because of the consequent economic collapse 3 months before the election, 23 million out of work because of that collapse, with many of those who will never find a job again. Classic results when government interferes with the free market.
Personally, I think I’d rather have a world without fannie and freddie myself.
Without the GSEs around, the housing market would be much different. Loans would be of shorter duration and the fed would be bailing out banks every time the Fed whipsaws interest rates..
Don’t forget to blame Realtors. Can you believe that Canada is more free market than America? I can.
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