FHFA Releases Plan on Fannie and Freddie

Yesterday the FHFA (Federal Housing Finance Agency) released it's plans for the ailing government sponsored enterprises, aka GSE's, and it's no surprise the whole report is blah, blah, blah.  Its the same ole crap we've been hearing - they are going to stabilize markets and increase fees to shore up the GSE's portfolios.  Yea, while they still suck money from the Treasury as they hemorrhage cash, still losing money, while the housing market just muddles along.

So basically they have no long term plan just alot of lip service.  The execs will still keep getting paid the big bucks to run the mortgage market into the ground.  Next month Fannie is raising it's delivery fees yet again.  This cost is spread to the consumer making it even more expensive to get a mortgage loan.  FHFA says it's "market risked-based" pricing but really it's nickel and dime everyone to death because we're bankrupt.

No wonder they keep coming out with these refinance programs so they can keep churning the books with the refi's and yielding higher delivery fees.  The FED keeps pumping the cash into the system helping fuel the refinance frenzy we have going on.  Obama wants to yet again modify the refinance program to allow all non GSE owned mortgages to qualify. 

Read my previous post http://swigartsmortgagejournal.blogspot.com/2012/09/obamas-refinance-plan-take-four.html on the Obamafi program(s) for details.  The market is a mess right now.  We still have lending tightening up more; problems with appraisals; lenders are short staffed and for the sake of profit do not want to hire more people.  I know people in the business working like a slave just banging their heads against a wall with all the hoops you have to jump through to get loans done these days.  It's a struggle from beginning to end.

You can find the story regarding the "strategic plan", if you want to call it that here to read for yourself and formulate your own opinion.  I don't think much will be accomplished until after the November election with regards to Obama's proposal for the new refinance program; or legislation on FHA with changes to mortgage insurance premiums yet again.  Too many distractions right now and the smear campaigns are heating up as we near November election time.