Real Estate Blog - Congress Encourages Increase In Fannie and Freddie Portfolio Loans

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Congress Encourages Increase In Fannie and Freddie Portfolio Loans

IStock_000002964519XSmall Congress With a tidal wave of expected foreclosures looming in the horizon, there is a move by Congress to expand the government-sponsored finance corporations.Increasing the portfolio size over the current $700 billion limit for each Fannie Mae and Freddie Mac is opposed by the current administration. The additional risk could end up being the taxpayers burden. That risk is now being encouraged by Congress with the proviso that Freddie and Fannie have a strong independent regulator overlooking these ostensibly hybrid public/private corporations even though having government backing.

Posted by San Diego Real Estate Voice authored by William Johnson on 10/20/2007 11:36 PM

Comments (2)

fannie mae, freddie mac, portfolio limits, congress, henry paulson, busg administratrion

2 Comments on Congress Encourages Increase In Fannie and Freddie Portfolio Loans

OCT

2007

Why is it that government feels they need to step in a solve problems that they have created with stop gap measures as opposed to educating the public and helping them solve their own problems?

Yes, this is a rather rhetorical question.

Thanks for the information.

Hi Mathew, Thanks for commenting. Though I agree with you that many of the proposals are stop gap measures, educating the public who need the education may be a bit late. The need would be greater for the ones that got involved in the crisis in the first place. There most certainly is more than enough blame to spread over many industries. The question is, Is there education that can be effective with greed? I am not sure?

Note: I had several errors in the last paragraph and not sure how that happened. I proofed from blogjet but when the writing went through Whitesmoke (used to check grammar and spelling) some of the words were changed leaving the last paragraph incorrect. Now corrected.

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