- The Trump administration on Thursday released its first formal plan to overhaul the housing finance system and begin the process of removing Fannie Mae and Freddie Mac from government conservatorship.
- The objectives of the administration’s plan are to create a limited role for the federal government in the housing finance system, enhance taxpayer protections and increase the role of private sector competition.
- That plan does not include ending the ongoing net-worth sweep of all of Fannie and Freddie’s profits, which is part of the Treasury’s senior preferred stock agreement. Instead, the plan allows the firms to retain more earnings and thereby grow its capital buffers.
I wish they’d just stop all government involvement in them. Shut them down or let them be independent companies. They haven’t achieved their goals from then they were founded, and they add more administrative costs. Jumbo rates are better than Freddie/Fannie rates.
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Like the farmers getting $24 billion socialist handout? Shouldn’t they go broke?
This is just another back door deal of this administration, somebody in that swamp is going to get a juicy deal.
It’s amazing when you aren’t quoting something. It shows how little you really know about anything. You certainly have a lot of uninformed opinions. It’s both sad and funny.
Well he’s not alone. Colbert had Biden on and said “you get the big things right like kids in cages” apparently unaware that that (and much worse) started with Obama/Biden, not Trump.
But to the subject at hand - Freddie/Fannie - got to agree - we shouldn’t have them. I don’t think we should have the mortgage interest deduction either (hugely market distorting) but in both cases all one can do is gradually nip around the edges. Too disruptive to just get rid of them all at once.
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