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The biggest bailout yet?? 16 August, 2009

Posted by David Anderson in Uncategorized.
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Joseph Murin must have read the inspector general’s report and is retiring from his post as CEO of the Government National Mortgage Association which markets FHA and VA mortgages. It is the only one of the Mae and MAC family that actually has the full faith and credit of the U. S. government.

If the housing market does not turn around, this could be the biggest bailout of them all. That is something we should keep in mind when we have the healthcare debate.

A few facts:
* The agency, which issues the only mortgage bonds to carry the “full faith and credit” of the U.S. government, packaged a record $43.5 billion in federally backed loans into securities in June. The agency’s mortgage bond volume almost doubled in the first half of this year, to $207 billion from $107 billion during the same timeframe a year ago, as the mortgage markets seized and borrowers turned to federally supported mortgage financing.
* FHA mortgages represent about half of new loans for home purchases, up from about 10 percent at the start of last year

Easy as that – 1 in 2 mortgages are now being funneled through the easiest agency to get a loan. And with the cost of living adjustments Congress passed in 2008 to get as many people as possible under government mortgages FHA loans as high as $700Ks are now being placed in states like California.

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