With housing on the mend, Obama pitches mortgage overhaul to curtail taxpayer risk

  • Article by: JULIE PACE , AP White House Correspondent
  • Updated: August 6, 2013 - 10:16 PM

PHOENIX — Buoyed by an improving housing market, President Barack Obama on Tuesday proposed a broad overhaul of the nation's mortgage finance system, including winding down government-backed Fannie Mae and Freddie Mac. He declared that taxpayers should never again be left "holding the bag" for the mortgage giants' bad bets.

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theagonybhoAug. 6, 13 7:53 AM

We dont want your healthcare reform or your mortage reform, concentrate on shutting down the 85 billion a month were dumping into the markets every month to prop the housing market up.

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nonewtaxesAug. 6, 13 8:12 AM

A healthy mortgage market requires home owners who are willing and able to pay back the money. Not too complicated.

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EleanoreAug. 6, 1310:24 AM

Sounds like another stage on the tour for corporatist overthrow of the government. Where do tey find these people?

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firefight41Aug. 6, 1310:38 AM

Another housing bubble on the way.

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zappy123Aug. 6, 1310:53 AM

And what happens when the government no longer buys mortgage-backed securities and keeps rates artificially low? The banks will set the rates at the point they are profitable (higher than they currently are)and there will be less lending as the banks now sell mortgages to Fannie and Freddie to clear their books and keep enough liquid capital to meet federal regulations.

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elmore1Aug. 6, 1310:54 AM

Barry, good move. Next, let's shut down the govt student loan program. The govt always screws things up when they subsidize things in the free market.

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dewarfAug. 6, 1311:15 AM

He's learning. BHO called the sub-prime mortgage program "a good idea, gone bad". Then it collapsed the entire housing market and the rest is history. At least he now understands that Fannie and Freddie must be shut down and that a free market for home loans must exist. How many hundreds of billions did it cost taxpayers to fund this lesson in federal government intervention and inefficiency? Are we slow learners (like Obama)?

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jpcooperAug. 6, 13 1:36 PM

"Obama will also insist that popular 30-year mortgages be widely available to borrowers, even in a system that would rely more on the private sector than the government to guarantee loans"

30 year loans are readily available if your qualified to borrow the money. Remember what happened the last time a Democrat President demanded loans to unqualified borrowers?

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cyberhaze9Aug. 6, 13 1:56 PM

It is long past time the government (and our tax dollars) stop paying the losses for loans made by private banks. Of course, this is likely happening because now that these bonds are profitable, the too big to fail banks want the profits for themselves and know a government largely staffed by their former executives and lobbyists (as well as politicians dependent on their political donations - both R & D) will be there to take the losses again if they need it to.

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dlzabzAug. 6, 13 3:35 PM

Not everyone should own a home. But once banks start making subprime loans at 20% above the market rate someone will step in and say that is predatory that everyone should get the best rate. Fool my once shame on me fool me twice...well you can't get fooled again.

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