“That is the rub the goverment changed those conforming standards,
I’m not aware of any change to conforming loan standards. Subprimes could still be conforming loans if the borrower had a sufficiently large down payment, had proof of income, the usual.
During the bubble most subprimes lent by Wall Street firms were non-conforming, something that WS wanted because non-conforming loans bring much higher yields.
“but regardless the government has no business “buying” loans.””
I’m not sure what part of government you think bought loans. Fanny was created as a GSE in the 30s but spun off in the late 60s and was a NYSE listed company. Freddy was created as a GSE around 1970 and also became a NYSE listed firm.
“What part of government, etc....”
The same part that bailed out GM. Bailed out Fannie to the tune of $100B, and the same part that’s going to take over your healthcare.
Don’t mean to be snarfy, but government should stay out of our business; no too big to fail crap. I’m sure you agree.
There is a growing number of Freepers who have good credit and solid loans and are paying their mortgages who are finding that their home loans are NOW owned by Fannie.
We don’t like that. If we wanted loans with Fannie, we would have gone and gotten loans from Fannie. We didn’t. NOW, we do. We aren’t party to the contract that did this to us.
Just as the government has federalized all the student loans, is the government going to federalize home loans? It sure looks that way.
I got a notice from Fannie telling me they now owned my loan. The bank they got my loan from is not recorded at the county.
Something stinks, and it is the too big to fail banks that are doing this.