As government-owned entities, Fanny and Freddy must maintain federally mandated affordable housing goals, including affordable 30-year fixed loans, and targets for helping low-income and minority borrowers enter the home ownership marketplace. But now that Fanny and Freddy are healthy and in the profit zone again following their taxpayer bail out ($190B) during the housing crash and Great Recession, the Trump Admin is looking to take the two private, with our without congressional approval or help.
Of course, according to Treasury Secretary Steven Mnuchin and Housing and Urban Development Secretary Ben Carson, those private owners would still want and appreciate the taxpayer’s continued guarantees on all the loans from any any loss the private investors might face in the future, thank you very much …just in case the whole house of cards comes tumbling down again, especially as subprime mortgage risks are rising quickly again.
The plan is raising congressional concerns that with strong (guaranteed) profit motives serving only the financial interests of private entities and Wall Street, the needs of low income home buyers and the public will be left along the roadside holding the bag if things fail again.
Learn more from CBS19news.com