Fannie and Freddie.

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The programs offered through Fannie and Freddie did well over almost forty years and the total benefits far outweighed the collapse in the last decade. 

The President needs to step forward with his plan and not wait for the legislature to develop one. This has been a mistake throughout his presidency. He removes himself from a leadership position.

The two lending agencies should only be in business of insuring loans and not holding the actual asset. The ability to hold mortgages caused theses companies to play the dangerous game of betting on the movement of interest rates. When this game is played greed sets in and that is when mistakes are made.

In the nineties their reserve requirements were reduced and that was a mistake. When the programs are started again the underwriting standards need to be stronger than they were at the time of failing.  Prior to the collapse both organizations loosened their requirements too far.

Fannie and Freddie need to revert back to the FHA model and not be reconstituted as private entities with shareholders. The result of making both companies shareholder owned and listed on stock exchanges.caused the their leadership to take too much risk to increase the price of their stock and increase their personal bonuses that was tied to profitability. 

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