- Feb 19, 2003
- Professional Status
- Certified Residential Appraiser
The U.S. housing finance system is worse off today than it was on the cusp of the 2008 financial crisis, Republican lawmakers and Trump administration officials warned on Tuesday. Fannie Mae and Freddie Mac, the two government-controlled enterprises that stand behind half the country's...
Right now, the companies are only allowed to retain a combined $6 billion in capital despite owning or guaranteeing $5.5 trillion of mortgages.
“I will tell you as a safety-and-soundness regulator, when I look at a $3 trillion institution that is leveraged 1,000 to 1, it keeps me up at night,” Federal Housing Finance Agency Director Mark Calabria, the companies’ regulator, told the committee.
“If we do nothing, this is going to end very badly,” he added.”
Appraisal waivers, anyone?