So do you really think when Hillary is prez that she will let all those people negaming to go down with the ship?
I don’t know. I’m hopeful that this whole thing will blow up before the government has time to act again. Wishful thinking on my part, perhaps.
The fact that the House voted 330-30 for an increase in the conforming loan limits is not encouraging. It makes me wonder if there are any true fiscal conservatives in the government anymore. The fact that the GSEs own or guarantee 40% of the mortgage market now and can own or guarantee up to 80% with the conforming loan limit increase is not encouraging. I’ve also heard that NAR is going to help Fannie and Freddie write the guidelines for the new conforming loan limits. Again, not encouraging.
Fannie is currently guaranteeing something along the lines of $2.6 trillion in mortgages on $40 billion in capital. If those mortgages were to be marked-to-market I think Fannie would be insolvent. Fannie’s next quarterly report is due out soon. Hopefully the next report will show that they are tapped out and can’t buy or guarantee any more mortgages. Probably more wishful thinking on my part.
I know things are going to be bad. I’m just hopeful that the private sector bears a significant portion of the pain as opposed to the taxpayers. I guess we’ll see as this whole mess unwinds.
