Fannie Mae, Freddie Mac Latest Bill Is DOA

Value Walk

July 03, 2014, By Tim Howard

The bill proposed today by Democratic congressmen who serve on the House Committee on Financial Services is quite possibly one of the most hair-brained schemes to date. Since the bill is not yet named, I would respectfully suggest “The house of cards.” Like all the bills before it, it sure seems like a lot of work to try to recreate Fannie and Freddie, who have been doing an excellent job doing what their bill would fail to accomplish. It would raise mortgage costs and push an exceedingly shaking housing market closer to the cliff. And when the housing market does go off another cliff where will we be without the Fannie and Freddie we know today? When all of the private capital flees the market who will be there pick up the pieces as Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)  did the last time?

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