Fannie and Freddie will not fail. They are too big to fail, and everyone knows it.
Their loans may turn out to to be worth hundreds of billions less than what was loaned, but then the govt will step in to save them. Over time, as these two GSEs loaned more and more in overpriced markets, backed by private capital that is a minuscule fraction of the loans, they went from being arguably partly private organizations to almost totally government organizations. Now the private capital they have can absorb only a tiny hiccup in the hyper-inflated bubble market, and the private label is a charade.
I fully understand why people worry about Fannie and Freddie. I just don’t understand why they don’t worry about FHA. FHA will take lower FICO scores, higher debt-to-income ratios, lower down payments, and unlike Fannie and Freddie, they have no capital at all between them and the taxpayer.
I fully understand why people worry about Fannie and Freddie. I just don’t understand why they don’t worry about FHA. FHA will take lower FICO scores, higher debt-to-income ratios, lower down payments, and unlike Fannie and Freddie, they have no capital at all between them and the taxpayer.
I fully understand why people worry about Fannie and Freddie. I just don’t understand why they don’t worry about FHA. FHA will take lower FICO scores, higher debt-to-income ratios, lower down payments, and unlike Fannie and Freddie, they have no capital at all between them and the taxpayer.
I fully understand why people worry about Fannie and Freddie. I just don’t understand why they don’t worry about FHA. FHA will take lower FICO scores, higher debt-to-income ratios, lower down payments, and unlike Fannie and Freddie, they have no capital at all between them and the taxpayer.
I fully understand why people worry about Fannie and Freddie. I just don’t understand why they don’t worry about FHA. FHA will take lower FICO scores, higher debt-to-income ratios, lower down payments, and unlike Fannie and Freddie, they have no capital at all between them and the taxpayer.
