Is FNMA going away?
Not this year! The Senate Banking Committee, in an effort to wind down FNMA (Federal National Mortgage Association), does not have enough votes. What does this mean? More debate and conversation with the politicians in Washington. FNMA & FRED Mac now buy 80% of all new mortgages. This is up from 40% back in 2008 when the financial crisis hit. FNMA was blamed for much of it with their loose lending practices. Funny how that year the major banks received bailout money, now six years later, one by one the major banks are paying huge fines for selling fraudulent mortgages to FNMA. Since 2008, JPMorgan, BofA, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley have agreed to pay $67 billion in settlements and penalties. In addition, the National Association of Realtors have made ’saving FNMA’ their major issue. With PAC money in the millions, see Super Pacs, the Realtors use this money to support candidates that support their issues. The story of FNMA will continue and it’s hard to say what will happen next. Has anybody had good or bad luck once your mortgage was sold to FNMA or Freddie Mac?