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Freddie and Fannie. Your opinion?

Since the Feds announced that both Freddie and Fannie were going into conservatorship, what do YOU think will happen to the industry? Is this a good move for the taxpayer, or has someone very high up just shot all of us in the foot? by milnej_189_826 from Edmond, Oklahoma. Sep 9th 2011 Reply


Ken Baltes (kbaltes)
#16 ranked lender in North Carolina - 242 contributions

Freddie and Fannie went into conservatorship in 2008. The federal government still does not directly guarantee the company securities, but it has committed to making up to $100 billion available to Fannie Mae and Freddie Mac in the form of loans and investments. The government has also paved the way for the Treasury to purchase the companies at a low cost if that becomes desirable. So far the government has done nothing but shovel (our) money into F&F at an alarming rate. This is not good for the tax payers and there appears to be no end in sight. Eventually, the government will need to get F&F out of conservatorship and either privatize them completely or retain loose reins on them with a partnership of some sort.Ken Baltes

Sep 10th 2011
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