Free Republic For over a year I have been warning that the Obama Administration plans to use Fannie Mae to nationalize a significant portion of Americaâ€™s real estate market. Today the President announced plans to utilize executive orders to side-step Congress, usurp the Constitution, and allow the government owned mortgage giant Fannie Mae, to start gobbling up mortgages.
The Presidentâ€™s plan will implement sweeping new rules that will allow the nationalized mortgage behemoth to refinance mortgages. Once Fannie Mae owns the mortgage, thereâ€™s nothing to stop the Obama Administration from using the Making Home Affordable Plan to allow people to exit their mortgages, with $3,000 in hand, then have Fannie Mae or Freddie Mac purchase the home and rent it back to them for pennies on the dollar.
Together, Fannie and Freddie own more than half of Americaâ€™s $12 trillion in outstanding mortgage balances; the majority of which are subprime loans. Beginning with the Clinton Administration and continuing with the Bush Administration, the Federal Government forced lending institutions to issue subprime loans to those that would not normally qualify for a mortgage.
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