Reform Of Fannie Mae And Freddie Mac Unlikely In The Near Future

Reblogger Pamela Seley, REALTOR®
Real Estate Agent with REALTY EXECUTIVES OTF BRE #01824145

I agree with George Souto. There won't be a reform of Fannie or Freddie in the near future, or maybe any future. Something needs to be done, but unraveling the tangled mess is going to take a Congress who has economic sense. Not sure many do, if any.

Original content by George Souto NMLS #65149

Fannie Mae and Freddie Mac have spent over 180 billion dollars of tax payer money since 2008 when they entered into Federal Conservatorship, and the latest prediction are that they will continue to tap into taxpayer funds for at least the rest of 2012.  Unless privatizing Fannie Mae and Freddie Mac becomes a hot political campaign issue very quickly, nothing will be done before the Presidential Election.

What that means is that if steps to once again privatize Fannie Mae and Freddie Mac, don't happen before the Presidential Election, then in my opinion we are likely to still be talking about this issue for the Presidential Election of 2016. Fannie Mae and Freddie Mac seem very comfortable in remaining in the position that they are presently in, and to continue to dig deep into taxpayer pockets.

Some have called for the elimination of Fannie Mae and Freddie Mac, but have not provided any reasonable alternative.  Returning Fannie Mae and Freddie Mac back to the private sector, like they once were seems to be the only answer, but that will require action from Washington to do so.  Given that Washington has failed to do anything meaningful to help correct the Real Estate and Financial Industries, it is unlikely that any meaningful can be expected in the near future.

 

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Pamela Seley, REALTOR®

Seals the Deals in Temecula Valley California
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