Drooling Republicans and Housing Industry “experts” having fit Governments Fannie and Freddie raking in big Profits for Country. They want it.

With mortgage stability in place, kinda the way it should have been all along, Fannie Mae and Freddie Mac are raking in billions of dollars in dividends for taxpayer. That money will go to replace all the cash the public sunk in to bailing out the banks.

Approaching their fifth year in conservatorship, a longer-term view is emerging that taxpayers might eventually recoup the nearly $188 billion bailout that kept the mortgage giants afloat during the housing market collapse.

If they’re make that much money now, why not keep that revenue cash cow in place for the fed, instead of giving it to an abusive corrupt housing industry? This is supposed to be bad news?

The Hill: Fannie, Freddie profits could sap will in Congress to reform mortgage giants: Fannie Mae announced on Thursday that it would send $59.4 billion in dividends to the Treasury. The day before, Freddie Mac said it had $7 billion for the government’s coffers. 

The greedmeisters hate to see all that green slip through their hands:

Fitch Ratings said that the massive dividend payment "will likely complicate efforts to pursue far-reaching” reform of the government-sponsored enterprises (GSE). Lawmakers and housing industry experts have called for reforms in the mortgage finance system to shift the lead role from the government to the private sector. 

Heck the private sector deserves that money, not the American people who would benefit from lower interest rates and get the bailout money back. They’re foaming at the mouth:

Some in Congress might view the agencies as "self-healing" and ask, "what's the urgency," especially as money pours into the Treasury. Instead, industry leaders said lawmakers need to face the reality that Fannie and Freddie remaining under government control is "not acceptable." Fannie CEO Tim Mayopoulos used Thursday's financial announcement to reiterate his stance that it would be a mistake for Congress to turn away from reform. "Our goal is to have private capital come and take as much of this market as it can," he said.

Not very subtle. The idea is to encourage private capital back into the markets. I’m not sure I understand why that would happen, or that it would benefit home buyers. 

Banks fork over $11.6 billion to Fannie Mae for bad Loans.

You've got to wonder why US banks are still paying massive fines when the cause of the Great Recession can be directly connected to poor people insisting on taking out bad mortgages. Or at least that’s what Republicans keep telling us:

Financial Times: US banks agreed to pay out more than $20bn on Monday in two settlements to resolve claims arising from the mortgage crisis, with compensation for bad loans wiping out most of Bank of America’s earnings for a second successive quarter.

Was it really the fault of poor people buying homes, or…

BofA, the second-biggest US bank by assets, agreed to pay $11.6bn to Fannie Mae, the government-controlled mortgage company, to resolve a protracted legal battle over bad loans.

In a separate settlement, 10 mortgage lenders, including BofA, Wells Fargo, JPMorgan Chase and Citigroup, agreed to pay more than $8.5bn to settle regulators’ allegations that they were guilty of widespread abuse of the foreclosure system that allowed banks to seize homes from defaulting borrowers. The two settlements add to the tens of billions banks have already paid out in fines and compensation for loose lending standards in the run-up to the financial crisis and the lax manner in which they dealt with home repossessions.

What the lame stream media isn't telling you is that poor people intimidated and forced banks to make these bad loans. Poor things.

Doing away with Fannie and Freddie; Doing away with Middle Class home ownership.

Beware of what you wish for. Even President Obama has proposed slowly ending Fannie Mae and Freddie Mac, the biggest government backed underwriters of home mortgages.

But the private sector lenders don't like the current system. And if they're on the hook with mortgage lending, then things are going to change. In anticipation, just under the 3.99%, the example below is off the charts horrific. The typical 30 year mortgage is a money loser in the later years for lenders, so look at what they've done to change that. I think were going to have a problem with "consumer uncertainty."

Forget about the "free" offer, think about the uncertainty of not knowing just how big your mortgage is going to be after the fixed rate ends after five years.  An adjustable rate could add hundreds to your monthly payment...maybe not. Who would think this is a good deal?

This is insane, and only the beginning of the end to the "middle class" ownership society. Maybe someday, we'll all be renting houses our land "lords." Wait a minute, isn't that why we escaped England and came to this continent?