Search
Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Filter by Custom Post Type
{ "homeurl": "http://rismedia.com/", "resultstype": "vertical", "resultsposition": "hover", "itemscount": 4, "imagewidth": 70, "imageheight": 70, "resultitemheight": "auto", "showauthor": 0, "showdate": 0, "showdescription": 1, "charcount": 3, "noresultstext": "No results!", "didyoumeantext": "Did you mean:", "defaultImage": "http://rismedia.com/wp-content/plugins/ajax-search-pro/img/default.jpg", "highlight": 0, "highlightwholewords": 1, "openToBlank": 0, "scrollToResults": 0, "resultareaclickable": 1, "autocomplete": { "enabled": 1, "googleOnly": 1, "lang": "en", "mobile": 1 }, "triggerontype": 1, "triggeronclick": 1, "triggeronreturn": 1, "triggerOnFacetChange": 1, "trigger": { "delay": 300, "autocomplete_delay": 310 }, "overridewpdefault": 0, "override_method": "post", "redirectonclick": 0, "redirectClickTo": "results_page", "redirect_on_enter": 0, "redirectEnterTo": "results_page", "redirect_url": "?s={phrase}", "settingsimagepos": "left", "settingsVisible": 0, "hresulthidedesc": "0", "prescontainerheight": "400px", "pshowsubtitle": "0", "pshowdesc": "1", "closeOnDocClick": 1, "iifNoImage": "description", "iiRows": 2, "iiGutter": 5, "iitemsWidth": 200, "iitemsHeight": 200, "iishowOverlay": 1, "iiblurOverlay": 1, "iihideContent": 1, "loaderLocation": "auto", "analytics": 0, "analyticsString": "", "show_more": { "url": "?s={phrase}", "action": "ajax" }, "mobile": { "trigger_on_type": 1, "trigger_on_click": 1, "hide_keyboard": 0 }, "compact": { "enabled": 1, "width": "200px", "closeOnMagnifier": 1, "closeOnDocument": 0, "position": "fixed", "overlay": 0 }, "animations": { "pc": { "settings": { "anim" : "fadedrop", "dur" : 300 }, "results" : { "anim" : "fadedrop", "dur" : 300 }, "items" : "fadeInDown" }, "mob": { "settings": { "anim" : "fadedrop", "dur" : 300 }, "results" : { "anim" : "fadedrop", "dur" : 300 }, "items" : "voidanim" } }, "autop": { "state": "disabled", "phrase": "", "count": 10 } }
Select Page

(MCT)—The regulator for Fannie Mae and Freddie Mac wants to shrink the seized housing-finance giants gradually and create a new market for mortgage-backed securities to help the private sector.

The recommendations came in a new strategic plan for Fannie and Freddie submitted to lawmakers Tuesday by the Federal Housing Finance Agency, which has overseen the companies since they were put into government conservatorship in 2008 to avoid their failure.

Fannie and Freddie have almost single-handedly kept the housing finance market afloat in recent years. Together, they guarantee about $100 billion a month in mortgages, an amount that represents about 75 percent of all new home loans.

The FHFA wants to jump-start stalled efforts in Washington to find an endgame for Fannie and Freddie, which are 80 percent owned by taxpayers and have received about $183 billion in bailout money.

The Obama administration and Congress want to shut down Fannie and Freddie and reduce the government’s role in the mortgage market, which has expanded dramatically since the financial crisis.

But there is no consensus on exactly how to do it amid concern that acting too soon could damage the still-reeling housing market.

In fact, the administration and some Democrats in Congress have been pushing Fannie and Freddie to do more to help struggling homeowners by reducing their mortgage payments and even lowering the amount owed on their loans.

The FHFA’s acting director, Edward J. DeMarco, has rebuffed calls for principal write-downs, saying they would result in bailout losses to taxpayers.

The latest plan for Fannie Mae and Freddie Mac doesn’t anticipate that they would continue “as they existed before conservatorship,” the FHFA said.

“And though (they) may well cease to exist at some point in the future, at least as they are known today, the country’s $10 trillion, single-family mortgage market will not go away,” the agency said. “Therefore, an orderly transition to a new structure is needed.”

DeMarco laid out three goals: build a new infrastructure for the secondary mortgage market, “gradually contract” Fannie’s and Freddie’s presence in the market, and continue efforts to reduce foreclosures.

He warned that simply shutting down Fannie and Freddie without new ways to encourage private investment in the mortgage market would drive up interest rates and limit the availability of loans.

About a year ago, the administration proposed to shut down Fannie and Freddie over five to 10 years. The plan presented three options for Congress to consider: a limited government guarantee of some mortgages, an emergency backstop role only during recessions, and a nearly complete pullback of the federal government from the mortgage market.

Treasury Secretary Timothy F. Geithner said this month that the administration expects to provide more details of its plans this spring.

“As we made clear last year, our immediate obligation is to repair the damage to homeowners, the housing market and neighborhoods caused by the crisis,” Geithner said.

Rep. Scott Garrett, R-N.J., who chairs a House subcommittee overseeing Fannie and Freddie, said he welcomed DeMarco’s plans.

“The housing sector will continue to be a drag on our economic recovery until we end the ongoing bailout of Fannie and Freddie and replace the existing government-backed mortgage-finance system with a purely private-market solution,” Garrett said.

©2012 the Los Angeles Times
Distributed by MCT Information Services


Buying/Selling Consumer Luxury National Spotlights
Concept business illustration.
Industry Expert Dave Garland Joins NAR’s Second Century Ventures Investment Team

Second Century Ventures, the strategic investment arm of the National Association...

Smiling young couple shaking hands with an insurance agent or investment adviser
Quicken Loans Ranks Highest in Study of Mortgage Servicing Client Satisfaction

Detroit-based Quicken Loans recently ranked highest in the country for client...

Betty_Crocker_450x300
Have Your Cake (and Eat It, Too) at the Betty Crocker House

Fresh out of the (cake) box is the Betty Crocker House,...

Agent Broker Coaching Lead Gen Teams
Real estate agent and senior couple by For Sale sign in front of house
4 Ways to Generate More Seller Leads This Summer

Real estate professionals are in the business of selling and, because...

cookies
Cookies Can’t Redeem a Bad First Impression

Think about your favorite products—your favorite cereal, chips or toothpaste. Whatever...

Key to success
3 Keys to Success in 2016

Two years ago, we completed a comprehensive planning session at Real...

Agent Best Practices Branding Broker Niche
Print
5 Ways to Grow Your Brand Awareness Using Promotional Merchandise

When competition is fierce and customers are continuously bombarded with products...

La Habra, United States - July 12, 2016: Macro closeup image of pokemon go game app icon among other icons on an iphone smartphone device. Pokemon Go is a popular virtual reality game for mobile devices.
Pokémon GO for Real Estate – Must or Bust?

If you’re anything like me, your social media newsfeeds look a...

Man inputing data on laptop and holding mobile phone in another hand.
Boost Your Online Presence with More .REALTOR Options

Website addresses that end in .REALTOR provide instant recognition as a...

Agent Apps/Gadgets Best Practices Broker Innovation
Silhouette of business people moving and joining pieces of jigsaw puzzle on a business and stock market  blue background, with charts, diagrams, world maps and data arranged on grid and tables. World maps showing continents and countries with economy data and growth diagrams. Light glowing from the center. Copy space on bottom.
PNC Offers Online Business Insights, Webinars and Tools for Agents

Looking for the latest real estate industry information, education and networking...

Woman holding tablet
Stay Connected to Your Business When You’re on the Go

As a busy real estate professional, you’re likely most productive when...

snapchat_real_estate_665x350
Why Snapchat Is Pure Gold for REALTORS®

There is a huge amount of attention being paid to Snapchat...

Business Insights Content Generation Marketing Trends
000027558128_Double
Webinar Recap: Build Your Brand with Next-Gen Social Media

If you’re working in the real estate industry, you already know...

000042086008_Double.jpg
Expanding Your Client Base through Social Media

Today’s buyer will search online at some point during the buying...

Facebook_Live_665x350
Facebook Live the Latest Trend to Infiltrate the Open House Scene

Drumming up interest in an open house may be about as...

Buying/Selling For Your Clients Home Improvement How-To Lifestyle
comback_kitchen
Comeback Kitchen: 3 Old-Is-New Trends

Kitchen design’s trending more behind the times than ahead of the...

468752934
5 Kitchen Island Styles to Fit Any Use

Regardless of the size of your kitchen remodel, adding an island to...

Wall_Panel_450x300
Luxury Wall Panels Take Home Décor to a Whole New Level

Looking to revamp your living space? Before you head out to...

manhattan
RISMedia’s CEO Exchange

RISMedia’s 2016 Real Estate CEO Exchange September 13 & 14, 2016...

Capital Building, Washington
RISMedia’s Power Broker Forum at the NAR REALTORS® Legislative Meetings & Trade Expo

RISMedia’s Power Broker Forum at the REALTORS® Legislative Meetings & Trade Expo...

PB-annual
RISMedia’s Power Broker Forum, Reception & Dinner – Annual

RISMedia Power Broker Events 2016 Orlando, Fla. Friday, November 4, 2016...