Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Fannie/Freddie shutdown and GNMA funds
Old 03-04-2011, 07:45 PM   #1
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
Fannie/Freddie shutdown and GNMA funds

There was an article published in the New York Times on March 3 entitled "Without Loan Giants, 30-Year Mortgage May Fade Away". The primary topic was possibilities of changes if Fannie and Freddie were shut down:

http://www.nytimes.com/2011/03/04/bu...1&ref=business

I wonder what effect this might have on GNMA funds, which are held by many people (including me). Do they disappear?
__________________

__________________
steelyman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-04-2011, 08:00 PM   #2
Recycles dryer sheets
thefinancebuff's Avatar
 
Join Date: Dec 2008
Posts: 262
GNMA guarantees FHA and VA loans. It's unrelated to Fannie and Freddie. I don't see why it would disappear.
__________________

__________________
thefinancebuff is offline   Reply With Quote
Old 03-04-2011, 08:14 PM   #3
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
Quote:
Originally Posted by thefinancebuff View Post
GNMA guarantees FHA and VA loans. It's unrelated to Fannie and Freddie. I don't see why it would disappear.
A piece of information I did not know. Which is why I ask the question on these boards.

Thanks - hopefully this means those funds are insulated.
__________________
steelyman is offline   Reply With Quote
Old 03-04-2011, 10:07 PM   #4
Recycles dryer sheets
MissMolly's Avatar
 
Join Date: Jun 2010
Posts: 471
Actually, GNMA buys the loans that are insured/guaranteed by FHA and VA. GNMA doesn't actually guarantee anything. If the loan goes into foreclosure, GNMA requires the loan servicer to repurchase the loan. The foreclosure is completed and a claim filed with FHA or VA for the balance due.
__________________
MissMolly is online now   Reply With Quote
Old 03-05-2011, 07:50 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,451
Quote:
Originally Posted by MissMolly View Post
Actually, GNMA buys the loans that are insured/guaranteed by FHA and VA. GNMA doesn't actually guarantee anything. If the loan goes into foreclosure, GNMA requires the loan servicer to repurchase the loan. The foreclosure is completed and a claim filed with FHA or VA for the balance due.

Learn something new everyday, I always wondered why GNMA funds were considered so safe. Nice to have a former banker on the boards, a belated welcome MissMolly.
__________________
clifp is offline   Reply With Quote
Old 03-05-2011, 05:36 PM   #6
Recycles dryer sheets
MissMolly's Avatar
 
Join Date: Jun 2010
Posts: 471
Thanks! I can't really claim the title of banker, however. I was a mortgage loan servicer for 30 years. Only worked in mortgage companies.
__________________
MissMolly is online now   Reply With Quote
Old 03-05-2011, 05:58 PM   #7
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
Great and timely responses to my initial question, thank you all. We certainly have a lot of accumulated knowledge on these forums! A great place to participate and learn.
__________________

__________________
steelyman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll:Government Shutdown Rustic23 Other topics 16 02-27-2011 10:38 AM
Fannie and Freddie Bonds Hank Stock Picking and Market Strategy 4 11-20-2008 04:59 PM
Fannie and Freddie --- Now owned by Tax Payers chinaco FIRE and Money 92 09-11-2008 08:27 AM
Fidelity, Wellington Lose After Fannie, Freddie Drop danm FIRE and Money 9 09-08-2008 08:06 PM

 

 
All times are GMT -6. The time now is 04:51 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.