Huntsman: Shut Down Fannie and Freddie

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yes i think they should be shut down im a first time home owner and im loosing my home asked for help and turned down say i make to much when im broke all the time feel bad for my kids always telling them no we cant afford it so yes shut them down and let them see how it feels to loose

britt voth of FL 4:53AM December 05, 2011

I don't think Fannie and Freddie should be taken apart. Without them, banks would be stuck with the loans they make. Lending would come to a halt. That's what we feared most and that's why the government bailed out the big banks. We wanted them to keep lending money to people. I refinanced a few years back and within a few weeks my loan was re-sold to another bank. Without this ability to re-sell loans on the secondary market our housing market would be much worse than it is now. We need these two lending institutions now more than ever. They are doing the "dirty work" that no private bank will ever do by taking on toxic assets from the banks. Would a private system equate to less lavish CEO spending? I don't thinks so, in fact I think it would be worse.

Torribio Corrales of AR 2:24AM December 05, 2011

Fannie Mae and Freddie Mac were created to pump money into the mortgage lending business because there wasn't enough private capital to do it. They've been around a long time and typically bought 70% of mortgages in this country. Today they own 90% of the mortgages. That's because private investors don't want to take on the risks that Fannie and Freddie do. It would be very foolish to dismantle these GSE at any time but especially in today's conditions. Jon Huntsman should rethink that plan.

Aug LaLucru of WA 1:46AM December 05, 2011

If a federal program cannot exist without subsides, it should be abolished. 90% of the federal programs should be handled on the state level where it can be managed without the covert larceny of the political system. Everything should be re-evaluated. Do you want a Social Security system? Do we remove aid to minors? Should we get more than we put in? Should some of your contributions be placed at your discretion in another retirement vehicle as a Roth IRA? Most of the programs are there to garner votes from fringe elements like unions, cultural,racial subsidies.

cckras of WI 12:50AM December 05, 2011

I think Fannie and Freddie should be taken out. Let the banks be in charge of all morgages and foreclosures. If the goverment is there to bail them out all the time they can keep forclosing with no or little risk to them. If they have to keep all these houses and take the hit they may work with the home owners more and maybe just maybe we could keep our homes.

Deb of MI 10:20PM December 04, 2011

Yes Fannie and Freddie should be dismantled . Huntsmans' analysis is exactly right.

Howard Sharp of MO 8:30PM December 04, 2011

Fannie/Freddie are giant slush funds for those who run it. The Management and the politicians involved. Frank, Dodd, etc. From 2008 until present, Both combined are nearly 300 Billion dollars in debt (not a deficit- but DEBT)
to the tax payers.
A previous 193B and now 117B, don't believe the BS that they can cover their losses- they cannot. Meanwhile, they loot the agencies and pad their own bank accounts, via bonuses and other forms of suspect 'legal' methods. Huntsman has it half right. Close them down for sure.
But his assertion that FHA has kept private lenders on the sidelines is a JOKE. Lenders are making loans using FHA-backed mortgages. What a stupid thing to say, really. Lenders are HAPPY to make FHA loans- because they are guaranteed by the government (read: tax payers)
Banks don't care if you default on a FHA loan! They don't take the LOSS! It's Just more right-wing rhetoric from the GOP. The right is as corrupt and moronic as the left. Bottom line is that Governments should NOT be in the business of Financing and Guaranteeing home mortgages, period! It's complete BS.
It is just another mechanism for politicians to gain votes and segments of certain populations.
These 'tools' of which utilize TAXPAYER monies are criminal. Politicians who enact this type of legislation should be jailed for their illegal and unconstitutional acts.
Stop voting for the same scumbags in different suits. GOP & DNC are criminal scum who have plundered our nation. Constitution Party

Geo of NJ 7:24PM December 04, 2011

YES! All government should get out of Business and leave it to the private sector - WITH PROPER CONTROLS ESPECIALLY IN BANKING AND FINANCE! No more garbage products, trash services, over baked charges and self serving lack of control on banks! THEY ARE WAY TO GREEDY AND IRRESPONSIBLE TO BE UNREGULATED!

Peter Field of AZ 4:00PM December 04, 2011

shutting down Fannie and Freddie would simply make a bad economy worse and could easily result in a further trashing of the housing market and another recession. This is not to mention putting thousands of people, who work for Fannie and Freddie now, out on the street, to add to the bad unemployment situation.
There is no doubt that Fannie and Freddie need to look differently and there are several good economists who have come up with plans on slowly reducing dependency on Fannie and Freddie (and therefore the federal government), which could be implemented over time and gradually. these plans would result in Fannie and Freddie staying in the game but with less government dependency and everyone would be better for it.
any politician who tells you he has a plan to just totally trash Fannie and Freddie is just trying to appeal to voters, who do not know any better, and is not taking a realistic approach to the current economic environment. don't fall into that trap and believe that there is a simplistic resolution to a very complex financial situation.
Getting rid of Fannie and Freddie may be a popular approach, but it is not a realistic approach and will not solve the current financial situation we have put ourselves in. It probably will, in fact, make things worse.

john kopke of UT 3:08PM December 04, 2011

Yes, I agree Fannie and Freddie should be no more.
My husband and I had both been laid off in 2008 and secured jobs within just a few months. We made a decision to simplify and refinanced our home to pay off our equity line and have one payment.
We were well qualified and our bank took care of everything. It was a very simple process completed in approximately 40 days. About 30-60 days later we received a letter that Fannie took the loan although we still paid our bank.
We would never have wanted this, I am not pleased our loan was funded by Fannie. If we had known, we probably would have kept it the same.
So looks like the gov't saw a good investment and sucked it up to help support their other failures.

Susan of TX 1:28PM December 04, 2011