Big Banks Profit off Government Supported Financier

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Fannie Mae, the government-supported mortgage financier, has begun limiting how many loans annually it will guarantee or buy from certain firms which is helping big banks’ profit and blunting Federal Reserve efforts to boost housing.

The conflict between protecting taxpayers and encouraging more lending to help the real estate market recover from the worst slump since the Great Depression shows the challenges facing the government and the industry as about 3,500 people attend the Mortgage Bankers Association’s annual conference in Chicago that started yesterday.

U.S.-backed mortgages still account for about 90 percent of new lending in the almost $9.6 trillion home-loan market four years after Fannie Mae and rival Freddie Mac (FMCC) were rescued by taxpayers.

In the end, all this means is that for the up and coming generation of potential homeowners, it will be increasingly difficult to get a mortgage and/or good mortgage rates. Welcome to permanent residence in the basement….
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Claire is an editor of the YoungPatriots website. A 20-something mom, her main concern is how the decisions made in government today will affect the lives of her children when they're her age. She believes passionately in a limited government, a charitable church and a peaceful personal life. In necessariis unitas, in dubiis libertas, in omnibus caritas.
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