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Obama wants new model for Fannie, Freddie

• Reuters

The Obama administration called for "fundamental change" at Fannie Mae and Freddie Mac, but a long, politically explosive debate lies ahead on the future of the bailed-out mortgage giants and housing policy that affects millions of Americans and billions in investment.

U.S. Treasury Secretary Timothy Geithner on Tuesday raised basic questions about the government's long-standing role in subsidizing the $10.7 trillion housing market and supporting the historic "American dream" of home ownership.


1 Comments in Response to

Comment by Ross Wolf
Entered on:

Does Obama Want To Destroy Real Estate As An investment?

The Obama Administration just recently launched a government program to make mortgage loans available to the poor requiring only $1,000 down payment to buy a house; that effectively amounts to renting with 100% government insured financing.

Real Estate Brokers won’t work to sell a house when there is no equity to pay their commission. It is obvious many of the poor $1,000 down mortgage applicants will walk leaving their home to foreclosure, bringing down neighborhood home values. If this government experiment proliferates, making mortgages to home buyers for only $1,000 down, it will not only cost taxpayers billions covering no down payment foreclosures, it will force community home values down causing many Americans to conclude it is economically unsafe to own real estate, crushing property values.

The Obama government could effectively socialize home ownership, transferring homeowner equities to the poor, making homes so undesirable as an investment that once valuable homes—would sell and rent dirt cheap as poor housing. Government would no longer need to make $1,000 down payment mortgages—to the poor; government would have millions of abandoned homes to giveaway, rent next to nothing. If Obama's socialized housing proliferates; remember Obama’s words, “We need to level the playing field” as Obama appears intended to destroy American’s number one free enterprise investment, a Citizen's home. Most Americans’ savings have been the equity in their house. Once that is destroyed most Americans will have nothing.

See: Government's New Genius Idea: The Government's New Genius Idea: Only $1,000 Down Payment For Poor People To Buy A House.

http://www.businessinsider.com/1000-down-payment-2010-8#ixzz0voMUt0iG 


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