OFHEO lifts caps for FRE, FNM

[oc_35_IHB]

Just when you thought the government couldn't meddle any more and stick its nose where it doesn't belong, here we go again. Election year politics never cease to amaze.

One day this will all catch up to us and the result is not going to be pretty. Did Bernake and friends forget the free market system that this country was built on?

http://online.wsj.com/article/SB120411930796696727.html?mod=hpp_us_whats_news

 

[jbatzmaru_IHB]

i read the article. it reminded me of other programs during 1930 where the government own like 14% of all mortgage. even though we are not in a recession, the gov is pulling out all the tricks from their bags just to make things easier on the housing market?

 

[mino2126_IHB]

OC_35

This really does not help Fannie / Freddie all that much. OFHEO requires them to keep a certain percentage of capital in reserve. So if either Fannie or Freddie increase lending or increase their portfolios they will have to go out and raise more capital through issuance of stock or selling of assets. Considering nobody has any confidence in MBS I don't think this will have much effect in general on the housing market.

Also, don't forget FM is already $18B under it's cap requirement set by OFHEO.

 

[IrvineRenter_IHB]

You should have seen the intraday volatility on these two today 2-27-2008. They moved up then down almost 15%.

 

[mediaboyz_IHB]

These stocks still haven't straightened out their accounting train wrecks. If it were anything other than a GSE, they would have been delisted a long time ago.

 

[GrewUpInIrvine_IHB]

a billion here, a billion there... pretty soon were talk'in real money.

 

[SoCalGal_IHB]

I'm trying to figure out when the new conforming loan limits are expected to be effective. Has anyone seen any scuttlebutt about that?