Privatizing GSE's Not Top Priority

[Zoe]

at least the federal govt (what remains of it ) is accountable to the taxpayers and their officials face re-election from the people

Private banks and corporations have no such obligation -

I do not see how Fannie or Freddie can be privatized without enormous losses felt all across the housing market and mortgage industry. Interest rates would shoot up, and there would be a scarcity of loans made or lenders left due to the high cost and risk of self-insuring or private insuring the loans.

yeah, that is why in house loans for banks are much more scrutinized than loans they sell to gses.

 

[CGinMN]

F/F release from conservatorship, privatization, and guarantee by the government are all different things.

If anything changes, most likely is that they are released with an explicit guarantee by the federal government, not privatized.

 

[Zoe]

at least the federal govt (what remains of it ) is accountable to the taxpayers and their officials face re-election from the people

Private banks and corporations have no such obligation -

I do not see how Fannie or Freddie can be privatized without enormous losses felt all across the housing market and mortgage industry. Interest rates would shoot up, and there would be a scarcity of loans made or lenders left due to the high cost and risk of self-insuring or private insuring the loans.

I think you have mostly in-house clients.

 

[Zoe]

F/F release from conservatorship, privatization, and guarantee by the government are all different things.

If anything changes, most likely is that they are released with an explicit guarantee by the federal government, not privatized.

Not sure. I think govt would just take them over before they let them go private. Too much risk. The govt is already broke. That might be straw that breaks the camel's back if they go private.

 

[Zoe]

I probably should email American Bankers association and see what they think. I don't know.

 

[J Grant]

I think you have mostly in-house clients.

They lend to fannie and Freddie, they just don;t use an AMC for their appraisal panel work - so far at least...

 

[Zoe]

They lend to fannie and Freddie, they just don;t use an AMC for their appraisal panel work - so far at least...

Okay, you mean they sell to them.

 

[Zoe]

It is whole different ballgame when a bank keeps a loan in house.

Understand girl?

I can help you understand if you don't.

 

[Zoe]

They lend to fannie and Freddie, they just don;t use an AMC for their appraisal panel work - so far at least...

You know my opinion on commingling of fees with appraisal management companies. If you don't? ............I think it is bad wrong.

The original bill was not written that way.