News rang out all over the mortgage industry when a report surfaced earlier this morning that lobbyist have been secretly meeting with government officials and Wall Street banks to devise a plan to take out Fannie Mae and Freddie Mac and takeover their businesses.
An investigation report showed that a group of high-level industry professionals that has moved back and forth between the public and private sectors since the housing crisis in 2008 lobbying to have the GSEs removed permanently. Now that the news has had a bit of time to marinate, some within the housing industry reacted by taking up alliances with lobbyist, while others went the opposite direction and questioned these higher-ups' motives.
As the cost of housing continues to rapidly rise, consumers can hardly keep up, especially as their income remains stagnant. However, despite the lowering consumer financial sentiment, economic conditions lift the housing market upward. Fannie Mae’s Home Purchase Sentiment Index fell 2 point 4 points from 83 point 2 points to 80 point 8 in November, as more Americans reported lower-income prospects.