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Fannie Mae Wind Down Deemed Threat To Home Recovery: Mortgages

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http://www.bloomberg.com/news/2014-03-17/fannie-mae-wind-down-deemed-threat-to-home-recovery-mortgages.html

A U.S. Senate plan to dismantle Fannie Mae and Freddie Mac (FMCC) may deliver an unintended blow to a fragile housing recovery.

A draft of the measure, which Senate Banking Committee leaders released yesterday, would replace the two financiers with a government-backed mortgage-bond insurer. It would cover losses only after private capital bears the first 10 percent, leading to higher mortgage rates, according to Credit Suisse (CSGN) AG analysts. The plan also would eliminate a mandate that a percentage of mortgages go to lower- and middle-income families, threatening to decrease America’s homeownership rate.

Senator Tim Johnson, a Democrat from South Dakota, and Senator Mike Crapo, an Idaho Republican, are trying to pass the measure this year. Outside the Senate chambers, the housing market is showing signs of cooling as tighter lending and higher prices shut out increasing numbers of first-time buyers.

“It certainly slows the rate of recovery,” said Kevin Chavers, a managing director at BlackRock Inc. and a member of its government relations and public policy group in New York. “It raises the question of what the implications are for the recovery as you raise costs and reduce the universe of people eligible to participate.”

The entire GDP game is based on house prices.

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The institutional speculators are being driven out of the market as the Taper runs down their monthly QE handouts.

Bloomberg has reported that:

http://www.bloomberg.com/quote/BX:US' rel="external nofollow">
is slowing its purchases of houses to rent amid soaring prices after a buying binge made it the biggest U.S. single-family home landlord. Blackstone's acquisition pace has declined
70 percent
from its peak last year, when the private equity firm was spending more than $100 million a week on properties"'(and) investing $8 billion since April 2012 to buy 43,000 homes in 14 cities….."
.
Edited by zugzwang

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The institutional speculators are being driven out of the market as the Taper runs down their monthly QE handouts.

Bloomberg has reported that:

http://www.bloomberg.com/quote/BX:US' rel="external nofollow">
is slowing its purchases of houses to rent amid soaring prices after a buying binge made it the biggest U.S. single-family home landlord. Blackstone's acquisition pace has declined
70 percent
from its peak last year, when the private equity firm was spending more than $100 million a week on properties"'(and) investing $8 billion since April 2012 to buy 43,000 homes in 14 cities….."
.

God bless uncle sam and his landlording brethren!

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