November 29th, 2005 at 12:53 pm
From the FAQ list for Fannie Mae:
At Fannie Mae, we are in the American Dream business. Our Mission is to tear down barriers, lower costs, and increase the opportunities for homeownership and affordable rental housing for all Americans. Because having a safe place to call home strengthens families, communities, and our nation as a whole.By raising funds from U.S. and global investors and dispersing risk on mortgage assets, Fannie Mae works to keep low-cost capital flowing to mortgage lenders across the nation, in all communities, under all economic conditions, at the lowest mortgage rates in the housing finance market.
From the Freddie Mac website, “About Us” (link dead):
Freddie Mac makes housing more accessible and affordable for millions of families across America. How? We link homeowners and renters to the world’s capital markets. It is a unique mortgage credit system that makes homeownership a reality for more of America’s families.
Two government agencies involved in securing low-cost housing for families, right? Check this report out from Reuters:
U.S. mortgage finance regulators on Tuesday raised the limit for loans that can be bought by government-sponsored mortgage enterprises Fannie Mae and Freddie Mac to $417,000 for 2006, in most areas.
Furthermore:
The limit in high-cost areas, which include Alaska, Guam, Hawaii, and the U.S. Virgin Islands, is 50 percent higher.
50% higher? So the limit there is $625,500, give or take? Ouch!
Even if you buy the premise that the government should be helping with housing in the first place, ask yourself this: Who deserves a half-million dollar house financed by our taxes, anywhere?
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