“Jan. 22 (Bloomberg) — The House Financial Services Committee probably will recommend abolishing government mortgage financing companies Fannie Mae and Freddie Mac, Committee Chairman Barney Frank said today.
“The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,†Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said at a hearing in Washington today. “That’s the approach, rather than a piecemeal one.â€
Fannie Mae and Freddie Mac, the largest U.S. mortgage-finance companies, have received $110.6 billion in taxpayer-funded aid since regulators took over the government-sponsored enterprises in September 2008 after determining they had inadequate capital to deal with a rise in mortgage defaults. ”
http://www.bloomberg.com/apps/news?pid=20601110&sid=aJN1KD4mKeLc
Where do the $Trillions worth of mortgages go? Who is going to pick up the financing slack? These 2 with the FHA have been the only thing keeping the housing market alive.
Amazingly the stock price for both is still above a $1 (@11:45am).
- papaswamp
