Changes

A secondary mortgage market is where an investor, in this case the U.S. government, purchases, or re-imburses the original lender for the value of the principal so that the original lender doesn't have to wait 30 years to collect the money it is owed, and can create a new loan faster with the original principal. FNMA then packages loans together of similiar value and credit worthiness and resells the loans to other investors, such as pension funds, etc.  

A secondary mortgage market is where an investor, in this case the U.S. government, purchases, or re-imburses the original lender for the value of the principal so that the original lender doesn't have to wait 30 years to collect the money it is owed, and can create a new loan faster with the original principal. FNMA then packages loans together of similiar value and credit worthiness and resells the loans to other investors, such as pension funds, etc.  

FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than the common man by allowing banks to re-lend the same money over and over again versus ordinary folks who could scarcely afford a home during the [[Great Depression]].  

FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than it did the common man by allowing banks to re-lend the same money over and over again versus ordinary folks, who could scarcely afford a home during the [[Great Depression]].  

Beginning in 1997, FNMA started guaranteeing to purchase mortgages from loan originators on borrowers with demonstrated credit unworthiness, i.e. subprime borrowers or deadbeats. Some of these loans than were snuck in to larger packages of prime mortgages with guaranteed credit worthiness precipitating the [[2008 financial crisis]]. As usual, [[politician]]s loosened the screws on borrowing and easy credit terms with the promise of "a home of your own" or "the American dream" to buy votes. And again when the system collapsed, it was poor people and renters who suffered most having to chip in to bailout the banks and non-creditworthy homeowners, and the loss of employment opportunities for a decade afterward.

Beginning in 1997, FNMA started guaranteeing to purchase mortgages from loan originators on borrowers with demonstrated credit unworthiness, i.e. subprime borrowers or deadbeats. Some of these loans than were snuck in to larger packages of prime mortgages with guaranteed credit worthiness precipitating the [[2008 financial crisis]]. As usual, [[politician]]s loosened the screws on borrowing and easy credit terms with the promise of "a home of your own" or "the American dream" to buy votes. And again when the system collapsed, it was poor people and renters who suffered most having to chip in to bailout the banks and non-creditworthy homeowners, and the loss of employment opportunities for a decade afterward.