jay trotta
Elite Member
- Joined
- Feb 8, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Connecticut
Did they both just Fail the Stress Test ??
I am curious as to specifically what you have done personally to address this issue? You are quick to point fingers at others for, in your judgement, not taking suffcient action to address this issue that you seem to feel is of great importance. Based on a search of AIs membership directory your name doesnt even appear.With no representation in congress and the Appraisal Institute sleeping, we might not be around for long.
Why would you be curious about something that you undoubtedly already know the answer to? lolI am curious as to specifically what you have done personally to address this issue?
Freddie Mac extends appraisal-free mortgage program to purchase loans
With no representation in congress and the Appraisal Institute sleeping, we might not be around for long.
https://www.housingwire.com/article...aisal-free-mortgage-program-to-purchase-loans
Did they both just Fail the Stress Test ??
They failed the street test because the government has completely looted the assets of these entities by sweeping all profits and leaving them with little reserves. So far the GSE's have paid the government over $270 billion dollars, which is over $83 Billion dollars more than they ever received from the government. The results of the stress test would have turned quite differently if the government had allowed the GSE's to keep their profits or even build adequate reserves after they repaid the funds that they borrowed, like every other institution (i.e., AIG and the big banks) was allowed to do. Thus, the stress test as it is concocted under current circumstances has zero to do with the actually viability of the GSE's.Yes they both did fail the stress test after all the bail out received.
They failed the street test because the government has completely looted the assets of these entities by sweeping all profits and leaving them with little reserves. So far the GSE's have paid the government over $270 billion dollars, which is over $83 Billion dollars more than they ever received from the government. The results of the stress test would have turned quite differently if the government had allowed the GSE's to keep their profits or even build adequate reserves after they repaid the funds that they borrowed, like every other institution (i.e., AIG and the big banks) was allowed to do. Thus, the stress test as it is concocted under current circumstances has zero to do with the actually viability of the GSE's.
No, what I am saying is that we have a government that used the events of 2007-2008 to seize and essentially nationalize 2 public traded corporations without compensating the shareholders and which has looted these two companies on an ongoing basis in order to fund continuing government opportunities, leaving them with no reserves. Then, the government mandates a stress test that the two companies fail precisely because they lack the reserves that the government looted from them and the results of this stress test are that the government can continue to claim that these companies are not viable enterprises and still need to be controlled by the government. This will continue to go on until these two companies no longer are feeding tens of billions dollars per year into the US treasury and then who knows what happens at that pointAre you saying we now have the white collar guys robbing the white collar guys ?? Where's the "trickle down" effect now........LOL
They failed the street test because the government has completely looted the assets of these entities by sweeping all profits and leaving them with little reserves. So far the GSE's have paid the government over $270 billion dollars, which is over $83 Billion dollars more than they ever received from the government. The results of the stress test would have turned quite differently if the government had allowed the GSE's to keep their profits or even build adequate reserves after they repaid the funds that they borrowed, like every other institution (i.e., AIG and the big banks) was allowed to do. Thus, the stress test as it is concocted under current circumstances has zero to do with the actually viability of the GSE's.
No, what I am saying is that we have a government that used the events of 2007-2008 to seize and essentially nationalize 2 public traded corporations without compensating the shareholders and which has looted these two companies on an ongoing basis in order to fund continuing government opportunities, leaving them with no reserves. Then, the government mandates a stress test that the two companies fail precisely because they lack the reserves that the government looted from them and the results of this stress test are that the government can continue to claim that these are not viable enterprises and still need to be controlled by the government. This will continue to go on until these two companies no longer are feeding tens of billions dollars per year into the US treasury and then who knows what happens at that point.
No matter what you think about Fannie and Freddie, the fact that the government has essentially stolen the shareholder equity and profits of two privately held companies should be concerning to everyone.