patrick.net

Article is 100% wrong.

The purpose of Fannie,Freddie,FHA,VA is to make house prices always go up.

In this they have done overall, a very good job.

If they could 'fix' these entities they would only want to make sure that no house was allowed to be sold for less than the previous sale. (watch for this new legislation soon! While riduclous, this is way more likely than fannie freddie 'going away')

PockyClipsNow says

If they could 'fix' these entities they would only want to make sure that no
house was allowed to be sold for less than the previous sale. (watch for this
new legislation soon! While riduclous, this is way more likely than fannie
freddie 'going away')

LOL, a laugh is a good way to start the morning. I thought we are supposed to try to avoid paranoia on this site ? The most alarming thing about that statement is the possibility of it's validity. I get Fannie's property emails daily and their asking prices have risen consistently even for the outbound locations they mostly cater too, Lancaster, Palmdale, Compton, etc. Then again they market properties in Sherman Oaks and Hollywood too. To this point, I have seen them as a should have been bankrupt company, i.e. stock less than $1 (Although I have heard they have breached that point), now under conservatorship and simply struggling for relevance again. However, I will keep an open mind as too their true mission statement.

Imagine if the government didnt guarantee ANY loans. Student, small business, mortgage, nothing.

And imagine that failed banks were liquidated.

Mortgage rates would be 10% -with 30% down. Thats about where the private hard money mortgage lenders are at now. (people only use those loans to fix and flip to buyers with FHA loans mostly).

So if all mortgages were private - RE prices in CA would be easily 30% of current value maybe - but this will never happen.

The FM's and the Fucking "A", are definitely is going the way of the Dodo bird. The question is when.

I'll just be glad I bought when I did. Loans going forward will be an impossible dream for most Americans. It's a shame they used these agencies as a NAR tool to sell $750,000 houses to prop up real estate in places like the Bay Area, and other expensive cities, that could not sustain those prices otherwise.

When these agencies are gone, it will be written in stone that the American dream will be "affording rent".

You are dreaming about them going away.

That has zero chance of happening unless we lose a world war, our currency is worth zero, and the conquering armies shuts them down. Ron Paul lost the election, no chance of dems or repubs stepping up to do this.

There is really no other scenario where they close down. The three F's +VA now cover over 95% or so of all lending. Impossible to undo that. Name one huge massive government program that got shut down - there are almost none.

CaptainShuddup says

The FM's and the Fucking "A", are definitely is going the way of the Dodo bird. The question is when.

PockyClipsNow says

That has zero chance of happening unless we lose a world war, our currency is worth zero, and the conquering armies shuts them down.

Well that's as good a time as any.

PockyClipsNow says

And imagine that failed banks were liquidated.

With that one statement alone, it implies that there are existing banks alive today that would have went belly up years ago, complete with all the associated consequences. Duh on my part, the 'TBTF' banks.

No laws have changed, who is too say that they won't get an itch to go back to the casino of credit default swaps and the like and lose their shirt again ?

Yes, this makes me hesitant myself to return to the casino floor.

Well they changed the accounting laws to allow insolvent banks to be solvent. I read that if the old pre 2008 accounting rules applied almost ALL BANKS would have to have been shut down/taken over by FDIC. (that woulda been awsome)

PockyClipsNow says

There is really no other scenario where they close down.

sadly ... this is true. anyone making such a move would get attacked from all fronts by vested interest.