York County Pennsylvania home sales here !
Fannie and Freddie Fail To Meet Low Income Lending Goals
We have heard how evil lenders have been writing loans to families that could not pay it back and causing the housing crisis. But if you look at the facts Fannie and Freddie encouraged this behavior.
By admitting they have failed to hit their quota they are telling us that even they think the mandates that Congress gave them are crazy.
Both companies missed their 2008 goal to set aside 56 percent of their loan purchases and mortgage guarantees for low-and moderate-income borrowers, Federal Housing Finance Agency Director James Lockhart said today at a real estate industry event in Washington. He didn't say what the new target would be.One of the ways Fannie and Freddie made their goals in previous years was to buy those subprime mortgages in private- label securities and that wasn't a safe and sound practice, Lockhart told the Asian Real Estate Association of America and National Association of Hispanic Real Estate Professionals.
Fannie and Freddie are saying they were buying up subprime loans to hit their quota of low income loans. We all know subprime loans have been a big cause of the foreclosure crisis.
Now we have the look at our national lenders who have to fulfill mandates from the federal government that they can not.
These mandates they are just as dangerous as they were 5 years ago. How can Congress and the Federal Government have not changed the mission of Fannie Mae and Freddie Mac to work in todays environment?