Tuesday, September 9, 2008

Fannie, Freddie, and Pauley

According to the Mercury News, the Federal Government’s takeover of Fannie Mae and Freddie Mac sent mortgage rates tumbling in California (one of the states that have been hardest hit by the housing credit-crisis.) This has caused a ray of hope for many folks seeking to finance or re-finance a home.

Reuters is reporting that Obama has stated that he is dismayed by the size of the bailout package for the failed quasi-governmental agencies. The Christian Science Monitor reports that McCain also wanted to see the government step in to save Fannie and Freddie but sees this as a signal that some type of privatization should occur in these government/private hybrid agencies responsible for owning or guaranteeing $5 trillion in loans.

Questions still linger as to whether executives from Freddie and Fannie will garner windfall exit packages.

These governmental type companies do (surprise, surprise) have political wings. OpenSecrets.org has a story that details Congressman Paul Kanjorski’s dealings with the political wing of Fannie and Freddie. According to the story, Congressman Kanjorski has received $65,500 from these embattled mortgage company PACs, making him the single largest recipient in the House of their PAC dollars. There is a detailed list of top recipients of their PAC dollars in the story as well.

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