A bipartisan bill to reform Fannie Mae and Freddie Mac creates a multibillion-dollar affordable-housing slush fund for Acorn clones who exist to shake down lenders for risky loans. The devil is in the details of the 442-page Johnson-Crapo housing finance reform bill, set for Senate markup this Tuesday. Cynically titled The Housing Finance Reform and Taxpayer Protection Act of 2014, it replaces Fannie and Freddie with a Federal Mortgage Insurance Corp. that broadly expands the affordable-housing mission that fueled the financial crisis. This new federal entity will require equitable access to mortgage credit for underserved borrowers with low income and weak credit — that is, borrowers who normally wouldnt qualify for a loan. Worse than the affordable-housing quotas that Fannie and Freddie had to meet in the run-up to the crisis, this new entity would impose a stiff affordable-housing fee on private mortgage securitizers who dont adequately serve the needs of the underserved. That the bill encourages risky lending is bad enough. But the billions collected each year through these fees are earmarked for affordable-housing advocacy groups that pressure lenders to make subprime loans. Who will approve these lucky recipients? The Obama HUD, the most radical in the history of the agency. news.investors/ibd-editorials/042414-698386-johnson-crapo-bill-doubles-down-on-fannie-freddie-mistakes.htm
Posted on: Fri, 25 Apr 2014 00:22:07 +0000
Recently Viewed Topics
© 2015