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Fannie Mae: The Rise and Fall – South Florida Real Estate News

Frank Vigliotti, Realtor, CDPE, PA

Frank Vigliotti, Realtor, CDPE, PA

Fannie Mae, The Rise and Fall – South Florida Real Estate News – Fort Lauderdale Real Estate Properties

In 1938, throughout the declining years of the Great Depression, President Franklin Roosevelt developed an ambiguous program known as Fannie Mae with efforts to make attaining home loaner the s more practical for home buyers in America. President Franklin Delano Roosevelt probably never fathomed that this agency would grow into one of the largest financial institutions on the planet that would help bring about the Great Recession of 2008. Fannie Mae has account for hundreds of billions of dollars paid by tax paying Americans because of irresponsible government intercession in the housing market.

 

70 years after Fannie Mae was introduced, it filed for bankruptcy and both Fannie Mae and Freddie Mac were overturned to the federal government in September of 2008. This change of ownership was the end of  ineffective state supported mortgage lending. Fannie Mae and Freddie Mac both have cost tax paying Americans roughly $185 billion. Those interested in more information about the patterns of the Great Depression throughout the 1930s and the massive foreclosure catastrophe  in 2008 should check out  “The Fateful History of Fannie Mae”. This informative book written by James R. Hagerty overviews the 70 year rise and fall of this financial giant.

 

James Hagerty suggests that American citizens will pay the price for brash business dealings of both Fannie Mae and Freddie Mac. His straightforward opinion and easy to read book highlights the Keynesian housing agreement that almosts demolished the global financial market back in 2008. The Keynesian housing experiment also resulted in an influx of short sales, bank-owned REOs and foreclosures.

 

Hagerty also recognizes that Fannie Mae began with noble intentions but that avidity eventually took over and became the principal catalyst of the financial calamity. James Hagerty is an experienced writer and editor with the Wall Street Journal goes into detail of how Fannie Mae leaders had plans of growing based on power and greed. This detailed book also covers the James Johnson conspiracy and visits his involvement in the program that helped a large amount of low or median  income minorities get homes in the 1990s.

 

Hagarty’s book also goes over how Fannie Mae executives transformed a helpful institution into a political advocacy structures that was fostered by both Democratic and Republican parties. Hagarty believes that the foreclosure and financial dilemma that the Fannie Mae and Freddie Mac institutes has placed on the next president includes unpolished business.

 

He goes on to mention that these government sponsored enterprises have stayed in position so long due to the the influential realtors, mortgage insurers, lenders and home builder groups who rely on Fannie Mae. Millions of the mortgages approved by Fannie Mae and Freddie Mac have defaulted and have led to massive amounts of foreclosures. From 2006 until December of 2011, Fannie Mae accounted for $163.6 billion which is over double the revenue generated in 30 years. Since mid-2012, the United States Treasury has input roughly $146.5 billion of equity capital into Freddie Mac and Fannie Mae  in order for them to remain the number 1 provider of home mortgages.

 

Indeed, the creation of Fannie Mae was a costly mistake. It is ecoming abundantly clear that the federal government — not the banks — caused  the financial and housing crisis. And “The Fateful History of Fannie Mae” places the GSE’s at the center of that storm.

 

Now that housing is showing a modest recovery, foreclosures are receding, and Fannie and Freddie are profitable again, Congress and the White House will be tempted to re-invent the GSEs.

 

But Hagerty has a warning: “There is no need for Uncle Sam to favor homeownership over renting — a choice Americans can make for themselves,” he said.

 

The Henri Frank Group at RE/MAX Preferred serves buyers, sellers and investors through out the South Florida region of the USA. It intends to bring to its clients local, state and National Real Estate News.

 

Please contact the Henri Frank Group at REMAX Preferred for Fort Lauderdale Properties for sale, Wilton Manors Real Estate, Oakland Park Real Estate, and Miami Beach Real Estate.

Contact us by clicking here: http://henrifrank.com/contact-us.php

 

Fort Lauderdale Realtors, South Florida Realtors, Miami Beach Realtors, Properties for sale in Fort Lauderdale, Foreclosure Properties in Fort Lauderdale and South Florida

 

 

 

 

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