tag:blogger.com,1999:blog-33399132.post4558034318106878854..comments2024-03-04T08:09:21.453-08:00Comments on Richard's Real Estate and Urban Economics Blog: Mark Thoma and Dean Baker are correct: Fannie Mae and Freddie Mac did not start the crisis.Richard Greenhttp://www.blogger.com/profile/02161226214739034402noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-33399132.post-28909459608118317592012-09-04T22:58:50.769-07:002012-09-04T22:58:50.769-07:00The trouble in Europe has actualy help US housing ...The trouble in Europe has actualy help US housing market as mentioned by <a href="http://www.facebook.com/ed.butowsky" rel="nofollow">Ed Butowsky</a> in his video, <a href="http://www.youtube.com/watch?v=Js7BoIqQR0w" rel="nofollow">"Fannie & Freddie Restructure Bailout Pay Back"</a>Anonymoushttps://www.blogger.com/profile/09297223516687324282noreply@blogger.comtag:blogger.com,1999:blog-33399132.post-18064476364766923562011-11-18T12:20:01.751-08:002011-11-18T12:20:01.751-08:00Oh Fannie Man/Freddie Mac RIP...
Hoa ManagementOh Fannie Man/Freddie Mac RIP...<br /><br /><a href="http://www.melrose-sovereign.com" rel="nofollow">Hoa Management</a>Melrose-Sovereignhttps://www.blogger.com/profile/02908810058708323463noreply@blogger.comtag:blogger.com,1999:blog-33399132.post-37363613752436253632011-11-18T12:12:53.483-08:002011-11-18T12:12:53.483-08:00This comment has been removed by the author.Melrose-Sovereignhttps://www.blogger.com/profile/02908810058708323463noreply@blogger.comtag:blogger.com,1999:blog-33399132.post-84943681344434820992011-09-08T15:28:06.950-07:002011-09-08T15:28:06.950-07:00Richard - I anticipate there is at atomic one adde...Richard - I anticipate there is at atomic one added and important section of abstracts in abutment of your altercation which, to my mind, has been underplayed in this accomplished discussion. <br /><br /><a href="http://www.hoamanagement.com" rel="nofollow">Property Management</a>Jacoblrishlyhttps://www.blogger.com/profile/08091963211029922763noreply@blogger.comtag:blogger.com,1999:blog-33399132.post-75246763839907724882011-07-06T20:26:10.173-07:002011-07-06T20:26:10.173-07:00Duh, of course PLS performed worse than the GSEs. ...Duh, of course PLS performed worse than the GSEs. The GSEs cherry picked the market. The comp is not to PLS but relative to their own prior years underwriting standards. Moreover, the GSEs as the largest buyers of PLS in RMBS supported a market that would have otherwise collapsed of its own weight in 2005.jjhttps://www.blogger.com/profile/07152744810556718257noreply@blogger.comtag:blogger.com,1999:blog-33399132.post-44726133232188423662011-07-05T09:44:08.260-07:002011-07-05T09:44:08.260-07:00Richard - I think there is at least one additional...Richard - I think there is at least one additional and important piece of data in support of your argument which, to my mind, has been underplayed in this whole discussion. <br /><br />FHFA released a research report in Sept. 2010 entitled "Data on the Risk Characteristics and Performance of Single-Family Mortgages Originated in 2001 - 2008 and Financed in the Secondary Market." <br /><br />Of particular importance is Figure 8 (page 16), entitled "Ever 90-Day Delinquency Rates on Higher Risk Single-Family Mortgages Originated from 2001 through 2008 and Sold into the Secondary Market, by Origination Year." While not a great title, the graph shows that for Higher Risk loans, PLS default rates were ALWAYS higher than GSE loans for vintage 2001-2007 loans. <br /><br />A frequently repeated claim is that the GSEs (whether or not through their "affordable" goals) caused a reduction in underwriting standards and therefore caused the crisis. As you point out, this is false - despite some bad actions by the GSEs. What this Figure 8 demonstrates is that it PLS defaults for similarly situated borrowers were substantially higher. Private securitization cannot be blamed entirely for the crisis: but it cannot be excused. These data seems to suggest that PLS underwriting was worse than the GSEs. <br /><br />The report and data can be found at: http://www.fhfa.gov/Default.aspx?Page=313 (but I can't seem to link to the Figure itself).Kurt Paulsenhttps://www.blogger.com/profile/17736596114412475784noreply@blogger.com