tag:blogger.com,1999:blog-940142538364421402.post6646383717982563996..comments2024-03-02T02:30:55.592-08:00Comments on Bill Maloni's GSE Blog: Not his Finest HourBill Malonihttp://www.blogger.com/profile/17459277100798719104noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-940142538364421402.post-66149930840390081352010-08-27T13:29:04.842-07:002010-08-27T13:29:04.842-07:00I'm not sure that I ever stated the issue as y...I'm not sure that I ever stated the issue as you have me doing so.<br /><br />I believe that Geithner and some other would like to replace F&F with something which could perform the Fannie Mae functions, but too many people right now disagree on what that should be.<br /><br />Leaving F&F in place is almost a politically non-starter, since so many people on both sides of the aisle--plus many in the media--have made the two pariah, it would take a brave and very strong public official to make the case for resurrection. Although, I can think of two people, President Obama is one and the senior Senator from New York the other, who have the capacity to make that case.<br /><br />The banks (and their mortgage banking subs) will sell their loans to any institution which allows them to stay in the mortgage business and transfer their mortgage risk to another investor. Fannie and Freddie did that superbly, before they crapped on themselves with the PLS subprime purchases.<br /><br />There is no good market reason why they couldn't do so, again. If Congress, in its grappling for a solution, chooses one or more large banks to play the GSE role, trust me, all of the other banks will send their mortgages to it/them.Bill Malonihttps://www.blogger.com/profile/17459277100798719104noreply@blogger.comtag:blogger.com,1999:blog-940142538364421402.post-89881629414778466952010-08-26T13:27:05.687-07:002010-08-26T13:27:05.687-07:00You said that Geithner has been considering "...You said that Geithner has been considering "How to Abolish Fannie Mae and Freddie Mac" and replacing them with the big Four financial institutions. But him and his advisers know very well that these institutions will not be able to handle a space left by the GSEs, do you think their competitors will want to sell them all their loans? Besides, it will take them years to fill in the MBS business gap, these institutions are not better than the GSEs. At this point it makes sense to consider resurrecting the GSEs as an alternative.Anonymousnoreply@blogger.com