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About "Fannie Freddie (NEG)"
Summary: Fannie Mae and Freddie Mac are slang terms for two entities created by the federal government to facilitate the home mortgage industry. They do this by buying up mortgages from private lenders and re-selling them as mortgage-backed securities. They are supposed to improve the housing market by 1) lowering mortgage interest rates (because they borrow money at interest rates below-market, since they are associated with the federal government) and 2) spreading risk across the entire country by combining mortgages from the country at large, meaning that a housing downturn in one area won’t bankrupt the mortgage lenders in that area (which works until the entire country goes into a housing crash, as in 2008) and 3) when banks and private lenders can off-load their mortgages to Fannie Mae and Freddie Mac (they sell the mortgages not long after the house is bought) they have more money to make new mortgages and don’t have to worry about repayment risk (if the borrower can’t repay, it doesn’t matter to the bank because they no longer own the mortgage).
Understanding the history is important: When Fannie Mae (“Federal National Mortgage Association” FNMA) was created during the Depression, it was owned and operated by the federal government. In the 1960s, Pres. Lyndon Johnson privatized it (but everyone knew or believed that the federal government would back it up or bail it out). Freddie Mac (“Federal Home Loan Mortgage Corporation”) was created in 1970 and operated the same way (privatized but still “kinda” affiliated with the federal government). When the housing market crashed in 2008, both were bailed out and brought back into the federal fold, in order to keep the home mortgage market afloat. AFF plan will probably try to privatize them again.
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Coach Vance debated in National Forensic League debate while in high school from 1979-1982. In college, he judged at high school NFL tournaments in North Carolina. A homeschooling dad himself, he realized the growing potential and benefit of homeschool debate and switched over to coaching homeschoolers a couple years later. In 2001, he helped Chris Jeub with bringing The Blue Book to a more advanced level. He has been co-authoring Blue Book ever since.