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Originally Posted by wmbwinn
I am going to have to post a lot of stuff to educate you. It is clear that a simple response is not going to work. Your responses show a great depth of ignorance about how Fannie and Freddie work and what happened in the mortgage crisis. So, you will have to give me some time to gather enough data to teach you what is going on.
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yawn.
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OK, so note a few facts that can be gleaned from this article:
1)Fannie and Freddie were chartered by the Federal Government as pseudo "private" entities under heavy federal control.
2)Fannie and Freddie underwrite at least 80 percent of all home mortgages in the nation
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2 is absolutely false.
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3)The government oversight was failing
4)the government was so clueless about the impending disaster that they actually thought they could take more money that was in Fannie/Freddie and use that to arrange a sort of bail out/buy out of bad papers on bad mortgages in the market place. So, it is clear that the government and Wall Street knew that the bad paper/mortgage problem was out there. But, the government who oversees Freddie/Fannie was clueless about the weakness of Freddie/Fannie because they thought Freddie/Fannie could bail the system out.
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the problem was the underwriting of the loans.
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1)Freddie/Fannie get a government mandate to guarantee mortgage loans made to poor people who normally can't get a home mortgage.
2)Freddie/Fannie and Government regulators go to banks with the program.
3)Some banks look at it as easy money: make the loans to a big eager population. sell the notes off to various programs which eventually ends up as bundled financial products that are owned by Freddie/Fannie OR which are insured/backed by Freddie/Fannie.
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that is NOT the "mandate" of either freddie or fannie. you are totally wrong.
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Now, I will have to do some more homework for your benefit. I need to find the issue of Clinton starting this program of "affordable housing for all Americans" and I need to find the names of all the crooks who left Freddie/Fannie with big bonuses and ended up in Obama's cabinet/administration.
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good luck finding what doesn't exist.