Private Capital Can’t Replace Fannie Mae / Conservatives And Liberals On Our Side by TimHowards717
There is much I want to share, so I am just going to jump right into it. First I want to share an editorial that has not received very much attention. It’s written by one of the most-conservative voices in the country Ken Blackwell. Now, of course, like all conservatives Ken makes a token call about winding down Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) but he also makes a serious call to respect shareholder rights. “To get us back on the path towards a strong, financially sound housing market that offers affordability to American borrowers, the government must also send a message to private investors that they will get a return on their investment.
When Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) were in grave danger during the housing collapse, the government sought private investment. Once they returned to profitability, the U.S. Treasury went back on the terms of the original agreement and mandated, with the stroke of a pen, that all profits should go to the Treasury, essentially taking the profits of these investors who took a risk hoping for a return. The Johnson-Crapo approach would have codified this theft of property. The government should abide by the original terms and choices that were promised. Taxpayers must be paid back, in full, with interest and investors must benefit from these profits as well. A system that discourages private investment by changing terms retroactively will only make the job of the new HUD secretary to encourage home ownership and investment more difficult.” I must say its refreshing to hear another conservative stand up and speak out against the governments attempts to nationalize the profits of Fannie Mae and Freddie Mac. It would be great to see more conservatives stay true to their values.
Secondly I want to share an op-ed that we received via Investors Unite. This article has also received far too little attention. It is an op-ed penned by Former U.S. House of Representatives Member Eva Clayton in the Charlotte (North Carolina) Observer. It’s titled “How Mel Watt Can Fix Housing Finance in the U.S..”She says,
“There is an immediate and clear path forward. It begins with ending the federal government’s conservatorship of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) and thereby allowing them to rebuild and flourish in the marketplace.”
As I said earlier I had an interesting conversation with Congressman John Lewis, I have attached a photo of what he wrote in one of the books he signed for us.
I want also to share something that I have gathered through my many conversations’ I’ve had on vacation so far. Fannie Mae and Freddie Mac have begun selling shared risk MBS for the first time. They have barely begun, and already they have revealed that there is very little appetite in the private capital market’s to get involved. Quite simply this has skidded into an absolute disaster.Remember Many in DC hoped to bring in huge amounts of private capital to assume a first loss position in the mortgage market. The failure of this initial experiment has already proven that it can not work. It’s outrageous that there has been little press coverage on this. Let me be clear that many in DC have taken notice of this and realized that private capital simply can not take the place of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC).
I hope to dedicate an entire post on this issue soon. The news today regarding the single security being debated was not news at all. They have been talking about this for a while, and it has little chance of being enacted. This was designed to try and distract attention from the utter failure of the shared risk MBS.
Our opposition is growing increasingly desperate. They are running out of places to hide.We have some pretty powerful forces backed into an increasingly small corner.We are winning on all fronts. Keep the Faith!
http://investorsunite.org/charlotte-observer-op-ed-mel-watt-can-fix-housing-finance/?utm_source=WhatCounts+Publicaster+Edition&utm_medium=email&utm_campaign=What+They+Are+Saying%3a++The+Two+Year+Anniversary+of+the+Third+Amendment+Sweep&utm_content=How+Mel+Watt+Can+Fix+Housing+Finance+in+the+U.S.
