Not the only crazy person advocating stuff like this. FHFA currently has proposed rule change now under comment to allow Freddie and Fannie to get into the second mortgage game. So now you the taxpayer can back someone consolidating high interest (ie high risk) consumer loans into a second mortgage. And we know the treasury will back Fannie and Freddie if crap goes down.

Wall St. Journal quote:
“Housing godzillas Fannie Mae and Freddie Mac are threatening the countryside again, and better hide the children. It’s not enough that taxpayers stand behind their $7.5 trillion in mortgages. Now Freddie wants taxpayers to back second mortgages—i.e., de facto consumer loans. What could go wrong?”

Go here to FHFA to read the rule:
LINK

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Posted by thunderbird1100

GSU Eagles fan

Member since Oct 2007

68666 posts

Posted on 5/7/24 at 7:44 am to Uroblast

quote:
Not the only crazy person advocating stuff like this. FHFA currently has proposed rule change now under comment to allow Freddie and Fannie to get into the second mortgage game. So now you the taxpayer can back someone consolidating high interest (ie high risk) consumer loans into a second mortgage. And we know the treasury will back Fannie and Freddie if crap goes down.

Wall St. Journal quote:
“Housing godzillas Fannie Mae and Freddie Mac are threatening the countryside again, and better hide the children. It’s not enough that taxpayers stand behind their $7.5 trillion in mortgages. Now Freddie wants taxpayers to back second mortgages—i.e., de facto consumer loans. What could go wrong?”

Ah, yes. Because nothing bad ever happened when the banks gave ARM and balloon interest only mortgages out like candy during early-mid 2000s when rates were low then increased again to subprime borrowers on homes they otherwise could not afford with little to almost nothing down.

This post was edited on 5/7/24 at 7:46 am

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