New Boards at Freddy and Fannie

[TerryRohrer]

VA is almost there.

And outpacing all but FHA in escalating delinquencies.

 

[Joe Flacco]

A perfect recipe to further inflate prices, taxes, insurance and Federal debt and reduce affordability.

Maybe. Whatever they end up doing, I am pretty sure it is going to be good for builders.

 

[glenn walker]

Elon Musk buddy was appointed to the board but quit after one day...he didn't say why but something's big going on and they kept a low profile.

 

[Fritz in NY]

I'm self-employed, I control my own destiny, NOT TODAY. We have become spinless pawns.

 

[timd354]

I get the feeling that FHFA is going to merge fannie and freddie and turn it into an actual government agency.

Why would you think that the Republicans, especially with Trump in charge would do anything to create what would be a new government agency...they are much more likely to privatize both GSEs.

 

[Non Sequitur]

Why would you think that the Republicans, especially with Trump in charge would do anything to create what would be a new government agency...they are much more likely to privatize both GSEs.

If the president is serious about starting a sovereign wealth fund, rolling Fannie and Freddie into it would be a great start.

All speculation aside, he wanted to privatize them during his last administration but didn’t get to it and I don’t believe the messaging has changed. IMO privatization will happen, timing is the only unknown.

 

[Fritz in NY]

TRUMP, start a new G,ment agency, not happing.

 

[glenn walker]

It's not going to be a typical government agency. The sovereign wealth fund will hold the loans and Black Rock will manage the assets like a hedge fund to enhance the value.

It won't buy new mortgage backed securities and the Two largest Fannie and Freddie will be dissolved and future loans will be held by the largest Money Center Banks who can sell loans to private. hedge funds insurance companies pension funds etc.

The Sovereign Wealth Fund will also acquire and manage any future things that may help us increase our Nations wealth.

Fannie Mae and others simply won't be in the loan or appraisal business once the event happens. The Nation's Money Center Banks are taking back control.

Black Rock is now the government's main tool it's even contracting to manage re building Ukraine war damage if it remains a country. This will take 2 to 3 years to accomplish but it's in the plans.

 

[J Grant]

God help us if DT "privatizes" Fannie and Freddie. Mortgage money would dry up because without the taxpayer guarantee of the loans, fewer investors would buy the mortgage security, and if anyone here thinks banks could afford tens of millions of residential loans kept in-house for 30 years, they are dreaming. Mortgage rates would rise, and homes would lose massive equity if financing became too difficult or unavailable.

A sovereign wealth fund exists in nations without debt. DT would gamble with it Redkellsy as he does everything else. He'd turn it over to Musk to manage and it would be volatile crypto that his billionaire hyena bros could short-sell and leave the fund worth a third of what it started with

Musk and Trump are all about "efficiency" ( massive job loss as the money from the "efficiency" accrues to the top ). This means that appraisers are expendable. Musk would fast-track an AI value model that his company bids on and wins, of course. This then could be renamed the Ex Appraisers forum.

 

[timd354]

God help us if DT "privatizes" Fannie and Freddie. Mortgage money would dry up because without the taxpayer guarantee of the loans, fewer investors would buy the mortgage security

You obviously are uniformed about how the mortgage market works as there is plenty of private capital that is more than willing to invest in conventional mortgages as private capital already owns the risk on ~2/3 of GSE mortgages thru mortgage securitizations. While, you probably already know that gse loans above 80% are insured by traditional private mortgage insurance but you probably don't know that GSE loans between 60% - 80% (with >20 years amortization) are also already insured by private capital through credit risk share transactions (by MIs and other entities). That leaves only mortgages with a less than than a 60% LTV or less than an 80% LTV and amortization schedules of 20 years or less) as GSE loans that are uninsured and these loans are of extremely low risk and there has been and will continue to be no problem attracting more than enough private capital to fund and purchase these loans.