LTS Posted September 21 Report Share Posted September 21 10 hours ago, Porous Five Hole said: I’m not in any way disagreeing with anything you said. Specific to the agencies, you’re 100% correct. However, I want to provide context as to why Fannie & Freddie exist. There are two reasons why a bank (or credit union) would prefer to hand out Fannie/Freddie money instead of their own. 1) Liquidity. This is oversimplifying, but there are stress tests for lenders. The example I would give is that a bank would need to have a dollar on deposit for every dollar they lend out. That is not the actual stress test, but it is a common sense approach. They have to stay solvent. So, what happens when the bank lends out all their available funds? They stop lending. The consumer demand for mortgages far outweighs the money banks have to lend. So they utilize Fannie/Freddie’s funds to support consumer lending needs. That’s why they exist today. 2) If the lender conforms to Fannie/Freddie’s qualification guidelines, Fannie/Freddie will help offset the bank’s losses if a loan goes bad. And why wouldn’t a lender want that? So we use them for a good reason. I won’t get into the financial crisis and the Fed bailout of these agencies which contribute to your opinion, but they serve a valuable purpose for borrowers and lenders. Just like FHA, VA, USDA, and state housing initiatives (including SONYMA in NY). Very true and important context to add. It speaks to the depths of how "money" is handled in this world. There's so much more and not just with financial institutions. They say follow the money, but it takes a pretty serious level of knowledge to attempt to do so. Quote Link to comment Share on other sites More sharing options...
bob_sauve28 Posted September 21 Report Share Posted September 21 Quote Link to comment Share on other sites More sharing options...
Doohicksie Posted Sunday at 02:42 AM Report Share Posted Sunday at 02:42 AM Who takes a cat camping???? Quote Link to comment Share on other sites More sharing options...
shrader Posted Sunday at 12:55 PM Report Share Posted Sunday at 12:55 PM 10 hours ago, Doohickie said: Who takes a cat camping???? Quote Link to comment Share on other sites More sharing options...
Night Train Posted Sunday at 04:35 PM Report Share Posted Sunday at 04:35 PM 13 hours ago, Doohickie said: Who takes a cat camping???? 1 Quote Link to comment Share on other sites More sharing options...
Doohicksie Posted 18 hours ago Report Share Posted 18 hours ago Once again you can get 4 free covid tests from the gubmint while supplies last. https://special.usps.com/testkits Quote Link to comment Share on other sites More sharing options...
PASabreFan Posted 10 hours ago Author Report Share Posted 10 hours ago 8 hours ago, Doohicksie said: Once again you can get 4 free covid tests from the gubmint while supplies last. https://special.usps.com/testkits They are detonatable. Word to the wise. 1 Quote Link to comment Share on other sites More sharing options...
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