Is Fannie Mae and Freddie Mac Picking Up Support?

Is Fannie Mae and Freddie Mac Picking Up Support from a new group called the “Coalition for Mortgage Security”?  According to the "Coalition for Mortgage Security" their goal is to reform the housing finance system “in a way that benefits and fairly treats current and future homeowners, taxpayers, and investors across the country”, and refers to it self as a "bipartisan, grassroots organization".

The genesis of the "Coalition for Mortgage Security" is a result of the Senate Banking Committees recently introduced bill to phase out the GSE's and create a new limited government entity which would resemble the FDIC.  The Coalition states their mission "is to ensure that the federal government enacts legislation that responsibly winds down Fannie Mae and Freddie Mac and sets up a new system funded by private capital with a limited government role and strong regulatory oversight.”

The “Coalition for Mortgage Security” also lists the three principles they are guided by:

1. "Replace Fannie Mae and Freddie Mac with private companies funded by private capital, without any special privileges or a Federal Charter;
2. Protect and ensure the continued availability and affordability of the 30-year fixed rate mortgage, which is the main engine of the housing market and the primary avenue for sustainable homeownership;
3. The rule of law is the basis for American Capitalism and must be acknowledged and respected in order for properly functioning capital markets. This is the cornerstone for attracting private capital to any market, especially the housing finance market. The rules of the game cannot be changed in the middle of an inning."

In my opinion Fannie Mae and Freddie are really not picking up new support.  What all this indicates to me is that Fannie Mae and Freddie Mac are taking steps to protect themselves under the guise of the "Coalition for Mortgage Security"

It will be interesting to watch how all this pans out, as the possible battle between the Senate Banking Committees, and Fannie Mae & Freddie under the name of the "Coalition for Mortgage Security", on how the two GSE's should be restructured.  I still have doubts any restructuring will take place since Fannie Mae and Freddie Mac have become a positive cash flow for the US Treasury.

Is Fannie Mae and Freddie Mac Picking Up Support?  Maybe.  But I think my theory of Fannie Mae and Freddie operating under the name of the "Coalition for Mortgage Security" is closer to the truth.  I for one do not blame them for taking steps to protect themselves from the boys in Washington.

 

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George Souto NMLS# 65149 is a Loan Originator 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, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com