Comment: Fannie and Freddie’s mandate is to compete with each other. Hence they have been in violation of their Congressional mandates the moment the two GSE’s ceased to compete and became co-monopolists of the mortgage industry.
A genuine, long-lasting economic recovery must include a recovery in the housing sector. Demand for housing ideally would come from the workers who are gainfully employed as in the case of North Dakota’s energy boom.
See: http://www.housingpredictor.com/2012/northdakota.html
Bienvenido Macario
Lemuria
March 2, 2013 – Ironically on the first day of the sequester, Freddie Mac posted a profit of $11 billion for 2012.
“It’s clear from our earnings that the housing market has turned a corner and that our work to minimize legacy losses and build a strong new book of business is paying off,” Freddie Mac chief executive Donald Layton said in a statement Thursday Feb. 28, 2013
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Freddie Mac news comes hand-in-hand with Fannie Mae’s 34% increase in Apartment Loans.
Freddie Mac was created in 1938 as part of the new deal. In 1970, “TO PROVIDE COMPETITION FOR THE NEWLY PRIVATE FANNIE MAE and to FURTHER INCREASE THE AVAILABILITY OF FUNDS TO FINANCE MORTGAGES & HOME OWNERSHIP.” Congress established the Federal Home Loan Mortgage Corporation (Freddie Mac) as a private corporation through the Emergency Home Finance Act of 1970.
It would have been better if these commercial loans were directly connected to job- creating businesses and industries not to the rental industry.
Excerpt from the news: “For 2013, the 34% increase in Fannie Mae Apartment Loans for Commercial Loan Direct continues to show a strong future for the rental market. Current market rates are as low as 3.07% so now is the time to take advantage of this incredible opportunity.”
There’s a very good reason why Fed Chairman Ben Bernanke tied the raising of interest rates to unemployment rate.
Bienvenido Macario
Lemuria
Commercial Loan Direct Reports a 34% Increase in Fannie Mae Apartment Loan Production
PRWeb – Thu, Feb 28, 2013 Atlanta, GA (PRWEB) February 28, 2013
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In the meantime, Fed Chairman Ben Bernanke warns that pulling the plug on the Fed’s aggressive monetary policy of massive bond purchases would doom the the recovery.
Premature Fed pullback could “short-circuit” recovery: Bernanke
Reuters – 4 hrs ago Saturday, March 02, 2013