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Well Paul Ryan says that Fannie Mae and Freddie Mac should be wound down Barney Frank says they should do more -- rescue housing and a letter to mortgage giants government overseer he's pushing them to do just that Elizabeth MacDonald is here.
With the latter day we've got -- instead of winding them down Barney Frank can say is saying to Fannie and Freddie.
There overseer there now -- down let's take a look at what the letter writers Barney Frank until the Democrats have said.
And a letter to get -- -- -- oversees Fannie Freddie.
He's essentially they essentially said this quote -- there's great concern about Fannie Mae's and Freddie Mac's unwillingness to increase the availability of all of modification programs.
And there's a refusal of an important government agency here under your direction.
To join in the effort to alleviate the great distress.
Caused by the current mortgage situation in American medicine troubling it's worth -- that Barney Frank was the official who said.
You know let's throw the dice the Fannie and Freddie.
You know they are fundamentally sound.
Isn't what got us some trouble the first time putting all -- pressure on Fannie and Freddie Mac yeah that's a question they had taken out now a NET1 151 billion dollars.
Out of the US treasuries so they are operating at the taxpayers' expense.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- right any you know what's interesting here instead of having an open debate in congress they're using the -- for -- instrument of a letter.
To -- to -- saying behind the scenes also the that the marketing Phyllis too rigid.
Take a look at what else a letter -- set to add to market -- banks offering is being inflicted on a number of individuals.
Many of whom are in these difficulties through no fault of their own goes on to say that we disagree flatly with the notion there's anything in the law that requires you.
To withhold your cooperation a letter writers from frank frank is also noted.
But essentially we enacted a law we wrote the law that gave you your job that basically gave you and the ability the ability to exercise your authority -- government overseas -- Fannie Freddie.
While a series threatening at first bond who doesn't -- the -- who -- that's more innovative step ankle -- he's probably like yeah I you know it you can have it -- up you know when he talks about.
Fannie and Freddie doing more -- the FHFA.
You know what are the main issues is that they are writing down principal and -- that kind of cuts both ways because on one hand.
The big banks are being forced to write down principal so what's good for the -- is why they're not good for the gander they have 50% of the mortgages they're not gonna break down rifle on the other hand.
Crude taxpayers they rates or principal that's money -- lose exactly getting -- so I don't.
I don't like it either way right that's the debate is editor Marcus saying instead keep rates low lengthened the terms of -- -- loans.
Barney Frank is saying no to principal -- -- -- Fannie Freddie apparently did not directing the way out more exotic negative amortization loans that banks are already writing down the principal upon Sylvia you know -- -- using Fannie and Freddie to basically transfer of the risks have them away from the banks at taxpayer expense rescue housing.
That's the debate.
In the meantime principal reductions restructuring and you -- -- have commenced not foreclosures yeah I don't think it's gonna solve.
Yet but yeah it's got the fire house to run bands or you're always about a month coming down to whether the taxpayer foot the bill camp -- thank you sure Hanks.
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