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Profit Sweep Feds Took Advantage Of FNMA?

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Terrel L. Shields

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https://www.housingwire.com/article...l-real-reason-for-fannie-freddie-profit-sweep
the 17-page memo from Mary John Miller, assistant secretary for financial markets, shows that the idea to extract all of Fannie’s and Freddie’s profits coincided with their anticipated turnaround.

Ms. Miller outlined “restructuring and transition options” for Fannie and Freddie in the memo, saying the No. 1 option was changing the terms of the bailout to “replace the current 10 percent fixed dividend with a permanent ‘net worth sweep.’” The memo noted that Freddie Mac was “expected to be net income positive by the end of 2012 and Fannie by the end of 2013.”
 

Meandering

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Pennsylvania
Freddie Mac Follows Fannie Mae to Rental Market, With Affordability as Goal
By MATTHEW GOLDSTEINJULY 19, 2017

When the government-controlled mortgage finance giant Fannie Mae agreed this year to guarantee a $1 billion financing deal for one of the biggest private-equity-backed landlords in the United States, the move prompted an outcry.

Housing advocates and legislators questioned why the landlord, Invitation Homes, which is controlled by the Blackstone Group, needed such low-cost financing, especially on the eve of an initial public offering through which Invitation Homes raised $1.7 billion in net proceeds.

Building a mortgage meltdown for the rental market
By Nicole Gelinas

July 23, 2017

Is the private sector allowed to do anything anymore? For nearly 80 years, Washington has subsidized homeownership — creating massive distortions both in house prices and in what neighborhoods look like. Now the feds will subsidize rental homes as well — expanding government control over even more of the economy.

The American home-buying world doesn’t even resemble a free market. Americans owe $10.3 trillion on mortgages. Fannie Mae and Freddie Mac, the government-guaranteed mortgage giants, hold $5 trillion of that debt. The Federal Reserve holds another $1.8 trillion. Smaller government entities like the Federal Housing Administration and Federal Home Loan Banks round out the government sector.

Who needs a residential appraisal for a nation of tenants?

But don't worry,
I'm sure as their rents are raised,
they'll all shop in the Malls again.

.
 
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