Quote:
Originally Posted by CaptainHaplo
buyers, but with a federal takeover of the 2 major high risk financiers, they will stop altogether. The government - through F&F, will offer lower interests rates to high risk lenders (in a gambit to promote the market) which will result in more people buying homes they cannot afford. Unfortunately, defaulting will then put all taxpowers on the hook (even more than they are because of the bailouts).
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Fannie and Freddie are not "high risk financiers". They are not financiers at all. They are insurers, and they have specific guidelines as to the size, loan to value and borrower credit score of loans that they will insure. The majority of the subprime lending in this country that fueled the crisis was done by non-bank lenders who made loans that were sold directly to private label securitizers.
I would urge you to do a bit of research on the basics so that your opinion is a bit more informed.