The federal regulator for Freddie Mac and Fannie Mae told the mortgage finance giants “thanks, but no thanks” to generating new loan products – at least while they are under the control of the U.S. government.
Too bad, when the past ones worked so well….(!?!)
The Federal Housing Finance Agency’s acting director Edward DeMarco told lawmakers that FHFA “concluded that permitting the enterprises to engage in new products is inconsistent with the goals of conservatorship.”
In other words, let’s keep our eye on the ball – you remember, that big ball of managing $5 trillion in mortgage holdings and guarantees that are supported by taxpayers.
DeMarco says the new ruling does not apply to foreclosure prevention efforts.