Trump wants to get rid of Fannie & Freddie

[Terrel L. Shields]

Goodbye residential appraisal work from them if it happens.

Do you think lending is simply going to stop for lack of FNMA? Seriously?

 

[alebrewer]

Goodbye residential appraisal work from them if it happens.

Actually, if they were privatized, I'd expect there would be more work. Investors - unlike the federal government - care about the quality of the loans being securitized. Private companies have no mandate to provide affordable housing - only to maximize profitability. Similar to the additional scrutiny applied by banks that port their loans.

 

[Tom D]

Without a tax payer bailout maybe more need for quality value control & tighter underwriting.

But it can't be 1 big company only, then they get bailed out like the big banks and auto companies.

 

[alebrewer]

Without a tax payer bailout maybe more need for quality value control.
But it can't be 1 big company only, then they get bailed out like the big banks and auto companies.

yep - in order to be a true 'for profit' company, there can be no umbilical cord.

 

[Non Sequitur]

Needed to happen a long time ago. The GSEs should be broken up into regional entities then move forward to privatizing.

 

[Charles West]

I agree with going private, the GSEs have served their purpose but now it is time to rein in the Federal Government's reach so we can start to chart a course towards sustainable government with a manageable budget. It would likely result in more work for appraisers, not less.

 

[Non Sequitur]

It would likely result in more work for appraisers, not less.

I truly believe this.

 

[J Grant]

Do you think lending is simply going to stop for lack of FNMA? Seriously?

I did not say lending is going to stop. Read my post -
I said appraisal valuation would likely not be part of the privatized lending on any large scale.

 

[J Grant]

I agree with going private, the GSEs have served their purpose but now it is time to rein in the Federal Government's reach so we can start to chart a course towards sustainable government with a manageable budget. It would likely result in more work for appraisers, not less.

How would it result in more work for appraisers, precisely?

Without GSE requirements and standards, when private money is lent, it is now 100% about profit; what standards would they have that would see them use appraisals?
Interest rates would rise without taxpayer backing of loans, further stalling the housing market.

 

[alebrewer]

Without GSE requirements and standards, when private money is lent, it is now 100% about profit; what standards would they have that would see them use appraisals?

So do banks that port loans get appraisals?