Big banks retreating from home loan business
Whos going to make the loans from their private pockets? Nobody. Fannie Mae is backing the likes of Quicken Loans. Quicken loans is the new Country wide except one key part, They are good fixed rate mortgages with 30 year terms being sold to Fannie and Freddie instead of to the Private mortgage market as they were in 2006! Fannie makes sure America does not get the screws again.
In 2006 Fannie Mae and Freddie were about 40% of the MBS market, PLS was 60%.
In 2016 Fannie Mae and Freddie are about 97% of the MBS market and PLS is 3%.
Congress would have to hand MBS to banks on a silver platter in the biggest Giveaway EVER by Jan 2018 to close Fannie and Freddie! THEN WHAT? Regulate the banks more? They wont be doing any Affordable housing schemes that congress loves so much. WHY? because America needs Affordable Housing! It really is that simple. At some point the tune needs changed by Dems and Republicans in the Congress.