Fannie mae foreclosures since september 2008

#Fannie mae foreclosures since september 2008 mac

Lawmakers were warned by industry experts against reducing the size of government-backed mortgages. According to Reuters, the first test will come at the monthвЂ™s end when the conforming loan limit draws back to pre-financial crisis levels. It will be interesting to see how this debate shakes out. Right now, taxpayers are forced to take the risks the government is taking, he said. Peter Wallison, an American Enterprise Institute fellow, argued in favor of a private system to enable investors. He said that historic low mortgage rates, now around 4 percent, would likely inch upwards. Senate Banking Committee Chairman Tim Johnson, D-South Dakota, was quoted in Reuters saying he is concerned about consequences that might happen if the government completely washes off its hands.

#Fannie mae foreclosures since september 2008 mac

Many people following the housing market have wondered, why do we need Freddie Mac and Fannie Mae at this stage in the game? According to Reuters, lawmakers on both sides of the aisle agree that the two entities should be вЂњwound down,вЂќ but senators canвЂ™t decide where the government should have a role in doling out housing finance subsidies.

Among the issues taken up were whether to wind down government backed entities Fannie Mae and Freddie Mac. Signaling that the government is indeed concerned about the housing market situation, top Senate lawmakers started debating housing finance reforms at a Congressional panel. ThereвЂ™s a flicker of hope despite the nightmarish poverty and unemployment numbers released in the past week.