Comments on: Eliminate Fannie Mae? The Impact on the Reverse Mortgage Industry http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/ Reverse Mortgage News and Information Mon, 13 Feb 2012 00:19:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-38405 Anonymous Thu, 28 Jan 2010 04:03:00 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-38405 Critic,rnrnYou have that right.rnrnBest regards,rnrnJohn Critic,rnrnYou have that right.rnrnBest regards,rnrnJohn

]]> By: jsmaldone http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35933 jsmaldone Thu, 28 Jan 2010 02:03:08 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35933 Critic,<br><br>You have that right.<br><br>Best regards,<br><br>John Critic,

You have that right.

Best regards,

John

]]> By: The_Critic http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35922 The_Critic Wed, 27 Jan 2010 03:34:58 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35922 John,<br><br>Like so many things in life, timing is everything. Hopefully, cooler minds will prevail. Best regards. John,

Like so many things in life, timing is everything. Hopefully, cooler minds will prevail. Best regards.

]]> By: jsmaldone http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35918 jsmaldone Tue, 26 Jan 2010 22:42:43 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35918 Critic,<br><br>I do agree with you 100%. The last thing we need in present day time is any more turmoil in the industry. The transition would take time and like any major government move like this, would create havoc and consumer suffering.<br><br>Our legislators and Barney Frank are not mortgage bankers, they show it in their actions daily.<br><br>The future may hold the elimination of FNMA and Freddie Mac. The replacement vehicle needs to be well thought out. There is a lot to consider from a world wide standpoint.<br><br>It will be interesting to see what format will be suggested? Thank you Critic.<br><br>John Smaldone Critic,

I do agree with you 100%. The last thing we need in present day time is any more turmoil in the industry. The transition would take time and like any major government move like this, would create havoc and consumer suffering.

Our legislators and Barney Frank are not mortgage bankers, they show it in their actions daily.

The future may hold the elimination of FNMA and Freddie Mac. The replacement vehicle needs to be well thought out. There is a lot to consider from a world wide standpoint.

It will be interesting to see what format will be suggested? Thank you Critic.

John Smaldone

]]> By: The_Critic http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35917 The_Critic Tue, 26 Jan 2010 21:51:43 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35917 Your comments are well taken. However, none of the things you state provide much difficulty. It is the turmoil in the transition that causes concern. With the mortgage industry in as much difficulty as it is in now, adding more turmoil and uncertainty right now does not seem to be a good course of action. Your comments are well taken. However, none of the things you state provide much difficulty. It is the turmoil in the transition that causes concern. With the mortgage industry in as much difficulty as it is in now, adding more turmoil and uncertainty right now does not seem to be a good course of action.

]]> By: HECM_Dude http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35905 HECM_Dude Tue, 26 Jan 2010 17:30:45 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35905 The conditions that led to the creation of the GSEs in the first place no longer exist, and perhaps they have outlived their usefulness. Fannie Mae was created as part of the New Deal in order to provide liquidity and order to a secondary mortgage market that was then in its infancy. Because its securities carried an implicit government guarantee, investors had the confidence to purchase them. <br><br>Today, in spite of the mortgage meltdown, there remains a robust secondary mortgage market, although its demand for stated-income loans has diminished. <br><br>The majority of "conforming" loans have been packaged into Fannie- or Freddie-guaranteed MBS, rather than purchased by those agencies as whole loans. The GSE function could be taken over by the private sector through the involvement of PMI companies and rating agencies. The risk could be managed through prudent origination and underwriting of the loans. Admittedly, this could result in a slight increase in mortgage rates as the government no longer would be involved as a guarantor of last resort. The conditions that led to the creation of the GSEs in the first place no longer exist, and perhaps they have outlived their usefulness. Fannie Mae was created as part of the New Deal in order to provide liquidity and order to a secondary mortgage market that was then in its infancy. Because its securities carried an implicit government guarantee, investors had the confidence to purchase them.

Today, in spite of the mortgage meltdown, there remains a robust secondary mortgage market, although its demand for stated-income loans has diminished.

The majority of “conforming” loans have been packaged into Fannie- or Freddie-guaranteed MBS, rather than purchased by those agencies as whole loans. The GSE function could be taken over by the private sector through the involvement of PMI companies and rating agencies. The risk could be managed through prudent origination and underwriting of the loans. Admittedly, this could result in a slight increase in mortgage rates as the government no longer would be involved as a guarantor of last resort.

]]> By: The_Critic http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/comment-page-1/#comment-35892 The_Critic Mon, 25 Jan 2010 20:16:22 +0000 http://reversemortgagedaily.com/2010/01/25/eliminate-fannie-mae-the-impact-on-the-reverse-mortgage-industry/#comment-35892 Joe is obviously not a mortgage banker. While his long-term view will no doubt come true, what will mortgage bankers do between the date of termination and the fulfillment of his prophecy?<br><br>It is not the present or the time when an alternative is available that is the problem; it is the transition. It would be good if Joe would help create a bridge addressing the transition. That is the hard and least rewarding part with this type of change.<br><br>Hopefully this change will not occur in the near term. Joe is obviously not a mortgage banker. While his long-term view will no doubt come true, what will mortgage bankers do between the date of termination and the fulfillment of his prophecy?

It is not the present or the time when an alternative is available that is the problem; it is the transition. It would be good if Joe would help create a bridge addressing the transition. That is the hard and least rewarding part with this type of change.

Hopefully this change will not occur in the near term.

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