Comments on: Is Fannie Mae Killing the Golden Goose? http://www.biggerpockets.com/renewsblog/2009/11/03/fannie-mae-killing-golden-goose/ Learn, Network, Invest Sat, 11 Feb 2012 23:51:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jamiehttp://www.biggerpockets.com/renewsblog/2009/11/03/fannie-mae-killing-golden-goose/#comment-74923 Jamie Wed, 04 Nov 2009 16:25:22 +0000 http://www.biggerpockets.com/renewsblog/?p=8119#comment-74923 This article is inaccurate. The Federal National Mortgage Corporation was <b>not</b> a private entity when it was created during the Great Depression. Fannie Mae became a private shareholder-owned entity in 1968, when Congress chartered it as a Government-Sponsored Entity (GSE); prior to that, it was a government entity.Two years later that Congress created the Federal Home Loan Mortgage Corporation, which today we know as Freddie Mac. <i>Freddie</i> was created specifically to provide a competitor to Fannie Mae and was since its inception a shareholder-owned GSE.The distinction is very important, because those who would otherwise complain about "government interference" need to grasp that Fannie Mae's history is as part of the goverment, and even the so-called private GSEs enjoyed implicit access to the U.S. Treasury as a backstop for their mortgage-backed securities. Free-market advocates should want to see these entities dismantled -- and should be prepared to accept that "the free market" is not presently making very many loans. This article is inaccurate. The Federal National Mortgage Corporation was not a private entity when it was created during the Great Depression. Fannie Mae became a private shareholder-owned entity in 1968, when Congress chartered it as a Government-Sponsored Entity (GSE); prior to that, it was a government entity.

Two years later that Congress created the Federal Home Loan Mortgage Corporation, which today we know as Freddie Mac. Freddie was created specifically to provide a competitor to Fannie Mae and was since its inception a shareholder-owned GSE.

The distinction is very important, because those who would otherwise complain about “government interference” need to grasp that Fannie Mae’s history is as part of the goverment, and even the so-called private GSEs enjoyed implicit access to the U.S. Treasury as a backstop for their mortgage-backed securities. Free-market advocates should want to see these entities dismantled — and should be prepared to accept that “the free market” is not presently making very many loans.

]]> By: Lizhttp://www.biggerpockets.com/renewsblog/2009/11/03/fannie-mae-killing-golden-goose/#comment-74904 Liz Tue, 03 Nov 2009 20:00:06 +0000 http://www.biggerpockets.com/renewsblog/?p=8119#comment-74904 The government needs to stay out and let the free market operate as intended. Because of restrictions placed on FNMA/FMAC we're in the problem we're in. The government needs to stay out and let the free market operate as intended. Because of restrictions placed on FNMA/FMAC we’re in the problem we’re in.

]]> By: Dave Sharphttp://www.biggerpockets.com/renewsblog/2009/11/03/fannie-mae-killing-golden-goose/#comment-74895 Dave Sharp Tue, 03 Nov 2009 16:49:50 +0000 http://www.biggerpockets.com/renewsblog/?p=8119#comment-74895 All these damn rules and regulations that are being slapped on are having opposite to the intended effect. The government wants to help the housing market recover, but prevent further meltdown, so it imposes these regulations which serve only to stifle lending. All these damn rules and regulations that are being slapped on are having opposite to the intended effect. The government wants to help the housing market recover, but prevent further meltdown, so it imposes these regulations which serve only to stifle lending.

]]>