Obama Calls for Mortgage Overhaul, Closing Fannie and Freddie

MoneyNews ^ | 6 Aug 2013

[shove_it]

Buoyed by an improving housing market, President Barack Obama on Tuesday proposed a broad overhaul of the nation's mortgage finance system, including winding down government-backed Fannie Mae and Freddie Mac. He declared that taxpayers should never again be left "holding the bag" for the mortgage giants' bad bets.

Obama outlined his proposals in Phoenix, the once foreclosure-riddled city at the epicenter of the nation's housing crisis. The housing market in Phoenix, as well as in many other parts of the country, has rebounded robustly, with prices in the southwestern city up 66 percent from the low point in 2011...

[Hoosier-Daddy]

Where would loans come from?

That would be the government. Nobody in government who knows how this stuff works willl give this sh*theaded proposal a moments thought.

[mylife]

He is just shifting responsibility to the private sector, but Big Gov will call the shots.

It’s a pretty brilliant strategy.

[mylife]

Agreed.

[shove_it]

Suppose Fannie and Freddie sell off all their loans. Where does all the money go? Reduce the national debt? I don’t think so. It will go to reparations and the disadvantaged so they can live in McMansions too.

That’s all I can come up with at the moment.

[mylife]

Keep your eye on the ball folks.
Obama is in full blow exit strategy now.
He has done all the damage he will do and is setting up Conservatives to take the fall down the road.

[RWGinger]

GE
Bush wanted to do that in 05.
before all the Dems forced mortgage companies to give loans to people with NO credit.
He was called a racist
As long as the mortgage companies have control over who they loan money to I am sure they will like the concept.
But I bet 0dumbo will still try to force them to loan to losers

[Vince Ferrer]

Whatever the fine print he is proposing, just privatize them and get rid of them before he changes his mind.

[al_c]

Probably more like a mortgage takeover. We keep drifting toward socialism with each passing day that he’s in office.

[PGR88]

Something doesn’t add up. Obama wants to get the Government OUT of a major component of the US economy?

Usually when a statist/progressive scheme fails, and Fannie and Freddie failed miserably, the Left’s next option is to double-down or nationalize everything.

What am I missing?

[Gil4]

“including winding down government-backed Fannie Mae and Freddie Mac. He declared that taxpayers should never again be left “holding the bag” for the mortgage giants’ bad bets.”

I agree with this. That means either...

A. He’s lying
B. There’s a catch
C. Hell just froze over
D. Some combination of the above

No, I didn’t read the article yet. I’m still recovering from the shock.

[TArcher]

Wasn’t this clown a big proponent of the Community Reinvestment Act? What an idiot.

       

 

" Uhhhh, that's not ours either! "

---Weiner, Obama, Perry, Pelosi, Frank, Pritzker and Associates, LLLP.

 

 

Follow the....

http://www.campaignmoney.com/finance.asp?type=in&cycle=08&criteria=pritzker&fname=penny

 

Billionaire business mogul Penny Pritzker is a member of one of America’s richest families and was the Finance Chair for the presidential campaign of Barack Obama.  It was Pritzker that led the prolific, and illegal, fundraising that helped power Barack Obama’s presidential campaign.  She was the chair of Chicago-based Superior Bank’s board for five years.  Pritzker was into subprime lending before it became all the rage starting in around 2000.  Prtizker's chairmanship was to concentrate on sub prime lending, principally on home mortgages, but for a while in subprime auto lending, too, after the Pritzkers' bank acquired its wholesale mortgage organization division, Alliance Funding, in December 1992. Back then they called it "predatory lending." Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings.  This collapse came amid harsh criticism of how Superior’s owners promoted sub-prime home mortgages. On Nov. 1 [2002] the Federal Deposit Insurance Corp. pointed the finger at Ernst & Young, Superior’s auditor, in a fraud suit filed in federal court here.  But that action came two months after a group of Superior depositors accused the bank’s owners and directors, including two members of the Pritzker family, of racketeering....

[snip]

...Pritzker is chairman of Classic Residence by Hyatt, luxury senior living communities in 11 states; chairman of The Parking Spot, which owns and operates off-airport parking facilities in nine cities; chairman of the credit data company TransUnion and chairman of Pritzker Realty.  She also sits on the board of Global Hyatt and plays a role in numerous non-profit groups, including serving as chairman of the Olympic village portion of Chicago’s bid to win the 2016 Summer Games. 

 

http://www.theobamafile.com/_associates/PennyPritzker.htm

 

 

 

Nudge nudge nudge...

 

[KC_Conspirator]

I know, you get it. You remember the past people who have had high positions at these places. Its a democrat/liberal clearinghouse to make millions. Plus, they both have a reputation in the DC area of easy, cushy work and huge six figure salaries there. No way way they close that.

[ez]

F&F are partially private corporations. O probably wants them completely under the control of the Executive Branch.

[shove_it]

I’m still recovering from the shock.

Me too. This has been proposed in the past but I never thought it would come from the mouth of the 0ne.

[lodi90]

Something doesn’t add up. Obama wants to get the Government OUT of a major component of the US economy?

---

I think the Dems will use the banks as brands to create a veneer of private sector respectability. That will be far from reality. This seems to be similar to how the Dems envision the role of health insurers under kenyancare/single payer system. These businesses will be required to pay the Dems to run the govt programs. Corporate fascism at it’s finest.

[4buttons]

yeah, and we oughtta wear propeller beanies that generate electricity.

typical Obama drive-by horsht.

[PeterPrinciple]

How would eliminating Fannie and Freddy give them more control?

---

Control stays the same, it is just an issue of illusion and ownership. Fascism appeals to capitalists in the early stages and this appeals to capitalist now. Like too many things today, it sounds good until you think about it.

Fanny and Freddy are consuming their cash flow and it is time to unload to the market but still control it.........

Again, read and study The Vampire Economy, it is an easy read.

[driftless2]

There are a number of good books out about the 2008 financial crisis and the role Fannie and Freddie and the Dems played in the disaster: Paul Sperry’s “The Great American Bank Robbery” and Tom Sowell’s “The Housing Boom And Bust.” Bill Clinton , Janet Reno, and Andrew Cuomo are the big villains from their actions in the ‘90s. Obama of course went along, but he’s not the chief villain. For a change.

[FreedomPoster]

>>Wasn’t this clown a big proponent of the Community Reinvestment Act?

And he will be even if he closes Freddie and Fannie.

Hey Mr. Bank, you like that nice gov’t charter there? Better be in compliance with my regulations . . .

You should know how this works, given your username. It is very much the fascist model. Give the illusion of private ownership, control business via regulation.

[tacticalogic]

Something doesn’t add up. Obama wants to get the Government OUT of a major component of the US economy?

I think they're getting out of the mortgage business, and into the credit rating business. Check out the Consumer Protection Financial Bureau. It's a new federal bureaucracy that will, among other things, oversee credit rating agencies and insure that the make appropriately "racially sensitive" adjustments to people's credit ratings. They're still going to "redistribute the wealth", they're just going to make the banks eat the losses.