Wind Down Freddie and Fannie? Whoa! Not So Fast - GOP

[Toro]

Earlier this year, leading House Republicans proposed privatizing mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) or placing them in receivership starting in two years.

Now, as Republicans prepare to assume control of the House next week, they are offering a more nuanced message: Any retreat of government support in the housing market should be gradual.

"We recognize that some things can be done overnight and other things can't be," said Rep. Scott Garrett, (R., N.J.), incoming chairman of the House Financial Services subcommittee that oversees Fannie and Freddie. "You have to recognize what the impact would be on the fragile housing market as it stands right now."

Cautious statements from key Republicans on the House Financial Services Committee are a shift from the debate over the Dodd-Frank financial overhaul during the spring and summer, when Republicans blasted the Obama administration for leaving Fannie and Freddie out of that legislation.

At the time, Republicans were backing a bill by Rep. Jeb Hensarling, (R., Texas), to cut the government's ties to the mortgage giants, or put them into receivership starting in two years. If they were deemed financially viable under Hensarling's approach, they would be fully private within five years. ...

A hasty end to the government's support of Fannie and Freddie would mean fewer Americans could get home loans, causing home sales and prices to drop even further and making the taxpayer bill for rescuing the mortgage giants even higher, said Rep. Randy Neugebauer (R., Texas), a former banker and housing developer who serves on the House Financial Services Committee.

"You'd cause Freddie and Fannie to have even larger losses than they'd already have," Neugebauer said. ...

"We don't believe that the private market, right now, is willing or able to provide the liquidity that's necessary to get us out of this," said Joe Stanton, chief lobbyist for the National Association of Home Builders.

"To erode that support right now would be a disaster," said Vince Malta, a real-estate agent in San Francisco and a vice president of the National Association of Realtors.

UPDATE: Top House Republicans More Cautious About Fannie, Freddie - WSJ.com

Bloody RINOs, eh?!

 

[Oddball]

Pretty much.

I wonder what their "gradualist" approach to abolishing slavery or repealing prohibition would've looked like.

 

[CrusaderFrank]

Fannie and Freddie should never be allowed to buy another residential mortgage again on pain of death.

You knew that the GSE's now control 100% of the mortgage market, right? That's up from 40% precrash.

You knew that right?

To take Fannie and Freddie out back to be shot, as they should, would severely disrupt the already fucked up economy.

 

[LordBrownTrout]

Everybody likes sausage at the carnival.

 

[Toro]

Fannie and Freddie should never be allowed to buy another residential mortgage again on pain of death.

You knew that the GSE's now control 100% of the mortgage market, right? That's up from 40% precrash.

You knew that right?

To take Fannie and Freddie out back to be shot, as they should, would severely disrupt the already fucked up economy.

Actually, its 90%.

Ever since the housing market went bust, the federal government has been the main source of support for new mortgage lending. Fannie, Freddie, the Federal Housing Administration and the Department of Veterans Affairs backed nearly 90% of new home loans in the first three quarters of 2010, according to trade publication Inside Mortgage Finance.

 

[CrusaderFrank]

Fannie and Freddie should never be allowed to buy another residential mortgage again on pain of death.

You knew that the GSE's now control 100% of the mortgage market, right? That's up from 40% precrash.

You knew that right?

To take Fannie and Freddie out back to be shot, as they should, would severely disrupt the already fucked up economy.

Actually, its 90%.

Ever since the housing market went bust, the federal government has been the main source of support for new mortgage lending. Fannie, Freddie, the Federal Housing Administration and the Department of Veterans Affairs backed nearly 90% of new home loans in the first three quarters of 2010, according to trade publication Inside Mortgage Finance.

Positive rep coming your way for point out that huge mistake on my part. I think it was 100% over the summer.

Thank God Obamanomics is working!

 

[8537]

It's easy to bloviate when you're somewhat powerless. Now that they actually have to participate in governing, they need to take the outcomes of their proposals into account, not just the ideology.

 

[CrusaderFrank]

They should start by prosecuting Chris Dodd and Barney Frank

 

[The T]

They should start by prosecuting Chris Dodd and Barney Frank

And Dodd thinks he isn't responsible since he didn't run for re-election...

He can still be nailed.

 

[The T]

Pretty much.

I wonder what their "gradualist" approach to abolishing slavery or repealing prohibition would've looked like.

Nailed. This can't happen soon enough. This camel shoulda never entered the tent to begin with.

 

[8537]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

 

[Revere]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

Only after they already did their damage.

 

[8537]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

Only after they already did their damage.

Indeed! Just like the Republicans.

 

[Revere]

Barney Frank, who proposed disbanding them?

Only after they already did their damage.

Indeed! Just like the Republicans.

He resisted every effort to reform them while it would have mattered.

 

[The T]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

Only after they already did their damage.

Yep. And the Same Bawney Fwank that said there was nothing wong wif Fannie and Fweddie when Wepubwicans were sounding the awarm...[writing lisp INTENTIONAL].

 

[kyzr]

Barney Frank, who proposed disbanding them?

Only after they already did their damage.

Indeed! Just like the Republicans.

So which party is the good-guys and which party are the bad-guys again, I keep getting confused??

 

[8537]

Only after they already did their damage.

Indeed! Just like the Republicans.

He resisted every effort to reform them while it would have mattered.

He wasn't even in the majority on the committee that mattered...when it mattered. He and the Dems weren't able to prevent the Republicans from getting anything out of committee...

Yet, did anything proposing to reform or abolish FM get out of the Republican-majority committee?

Hint: The answer is "no".

 

[Revere]

Indeed! Just like the Republicans.

He resisted every effort to reform them while it would have mattered.

He wasn't even in the majority on the committee that mattered...when it mattered. He and the Dems weren't able to prevent the Republicans from getting anything out of committee...

Yet, did anything proposing to reform or abolish FM get out of the Republican-majority committee?

Hint: The answer is "no".

You mean the ones who got thrown out of office?

 

[8537]

Only after they already did their damage.

Indeed! Just like the Republicans.

So which party is the good-guys and which party are the bad-guys again, I keep getting confused??

In terms of the economic crisis? They both bear some blame, but mainly the quants are to blame.

 

[Revere]

Indeed! Just like the Republicans.

So which party is the good-guys and which party are the bad-guys again, I keep getting confused??

In terms of the economic crisis? They both bear some blame, but mainly the quants are to blame.

Because Dodd-Franks passed on reining Fannie and Freddie in?