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U.S. Has Nationalized Mortgage Industry

Discussion in 'Politics, Elections & Legislation' started by Kim Little, Mar 14, 2013.

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  1. Kim Little

    Kim Little Member

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    The home mortgage sector in the world’s largest economy has been “effectively nationalized,” says George Melloan, former deputy editor of the editorial page for The Wall Street Journal.

    Government agencies — primarily Fannie Mae and Freddie Mac, but also the Federal Housing Administration — insured or purchased more than 90 percent of home mortgages originated in 2012, a $1.3 trillion business, compared with 30 percent in 2006, according to ProPublica data.*

    *Newsmax
     
  2. Stl Flyn

    Stl Flyn Well-Known Member

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    No way!!! Now I am really going to have a hard time sleeping tonight.
     
  3. Bisi

    Bisi TS Member

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    They also control the student loan business. They are trying to become the "one stop shop" of our lifes. Healthcare - government, need a mortage - government, student loan - government, education - government and on an on.

    That way you'll never be tempted to bite the hand that feeds you. All we can hope for is a good and benevolent massa.
     
  4. BT-100dc

    BT-100dc Active Member

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    Just think, what they've (gov't) done to housing they'll be doing to student loans then your healthcare. There's so few things the gov't can run efficiently (can't think of 1 off hand) why would you intrust these Einsteins with more power? The next bubble to blow up will be the student loans. We're so screwed. BT100dc
     
  5. Stl Flyn

    Stl Flyn Well-Known Member

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    I said, I am tired of thinking!
     
  6. Bisi

    Bisi TS Member

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    We know Flyn. That has been obvious to anyone who has taken the time to read any of your posts in the last 5 years.
     
  7. Stl Flyn

    Stl Flyn Well-Known Member

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    Five Years!!!!!! You have already driven me to drinking. After five years, I am sure I will be in the loony bin, with you. LOL
    [​IMG]
     
  8. likes-to-shoot

    likes-to-shoot Well-Known Member

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    One mans opinion and the title states that it has been nationalized?
     
  9. Kim Little

    Kim Little Member

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    Inside Mortgage Finance is a second source...
     
  10. Kim Little

    Kim Little Member

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    Look at the bright side...if you default on your mortgage they might bail you out. ??
     
  11. Orange49

    Orange49 TS Member

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    It hasnt been "nationalized". Its true Fannie, Freddie and Ginne account for over 90% of the backing on mortgages currently being written. But really it just has a lot to do with the pricing put forth by the agencies and the current lack of private money and investors. Not a whole lot of incentive for private money to lend out thier own capital with rates being sub 4%. Private money knows they can get better retuns elsewhere. It will all start to flip back before long - we are slowing starting to see private money come back...slowly.
     
  12. Leo

    Leo Well-Known Member

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    I bought a house this last June. Even though I had cash to buy it, I decided to pay 50% down and put a 10 year Mortgage on it. I searched long and hard for a bank to mortgage it conventionally. I actually paid a little more interest so I would not have to deal with the Feds. At Christmas I sent the bank an extra $2000 to put against the principle. The check got cashed. I got no statement that showed it applied. When I inquired, I was told the Feds bought my mortage from the bank. I called the number they gave me to a broker who said he could find out and be sure the extra money was properly applied. Three months and I still have nothing but a notice from Freddie Mac that they own my house. Since my health is getting poor, I am worried about them taking it away from my widow, even after my life insurance pays it off.
    It seems like a bad deal to me.
     
  13. Steve W

    Steve W Well-Known Member

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    Because of the Fed owning 90% of the mortgages on the market, you should look into the "REIT" sector of stocks.

    Companies like "NLY", "AGNC" are paying 11~16% dividends to share holders with lower risk of their mortgage backed securities which mostly own by the Fed. IMO, we are relatively safe on their stocks for approx. min. of 1~2 years.
     
  14. Stl Flyn

    Stl Flyn Well-Known Member

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    Should have gone to a bank that holds their own mortgages. Also, look for wording in those pounds of paperwork that say specifically that they will not be sold on the secondary market. Better yet ask to see that. Seeing as you had that much of a downpayment there would not have been a problem.

    I believe they are still insured by the Feds., but cannot take control of it.
     
  15. Steve W

    Steve W Well-Known Member

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    I don't know any bank that holds all their mortgages, selling mortgages in pack will free up their capital, commercial banks can't survive on mortgage rate earnings.

    Mortgages are sold in packs since day one. There're brokers earning fees by selling mortgages to investors and fund managements.

    Mortgages are considered the most secured sector in large fund management companies, with the lowest returns.

    Bank make 5 times more on Credit Card interests.
     
  16. Stl Flyn

    Stl Flyn Well-Known Member

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    Mine does.
     
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