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-- mortgage giant Freddie Mac seeking.
An additional ninety million dollars in government say that -- tax -- money.
After posting a loss but first quarter of the year and -- it is the resident fellow had -- -- institute joining us now from Washington DC we -- in these poppies but Fannie Mae and Freddie Mac dead.
And you have written extensively.
About how the loose lending standards pushed by congress.
And Hud got us into the housing mess we're still trying to come back from but I wonder.
What we repeat the same mistakes book -- the government does control Fannie and Friday.
That's the definite dip potential -- in the the government controls Fannie Freddie it off so controls FHA.
Department -- our cultures program in veterans administration.
And the five of those that agency's account for about ninety plus percent of all mortgages being underwritten today.
The total lack capital backing.
That business which is in the trillions and trillions of dollars is negative I mean Fannie -- just to take Freddie.
Freddie -- the taxpayers.
72 billion dollars has no additional capital obviously there there in.
Negative to the taxpayers they have one point six trillion dollars outstanding with zero behind it.
And that's a problem Fannie -- the same -- situation.
FHA the part of our culture overall pretty much in the in the same boat.
And what we have -- her series of attempts.
You mention the efforts over the last fifteen or twenty years to loosen lending.
You think we would've learned from that yet.
The department of housing and urban development and the consumer financial products bureau are both attempting to come out with regulations.
Done something called disparate impact.
Which basically says if you have underwriting standards that result in a battle hire turn down rate.
For one group vs another you have to eliminate that impact which is going to put its rate back in the same mess that we just are trying to get -- out of.
The we will never get out of Fannie and Friday.
It's gonna take a long time.
It's been -- coming up on for years they've been -- ship.
And congress is done in the administration's done nothing.
To end it.
And we're still running at 90% they've driven private capital out of the market place.
And private capital can't come back because the government is just.
Taken over the market.
-- it was -- talked chief thank you so much we'll see various and keeping the done in the bailouts gotta worry about Fannie and Freddie first and foremost -- thank.
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