SECU "New/New" Proposes Risky Move Of Selling Member Mortgages...

  Holy Cow! Why keep stepping in it?

Been talking about SECU's latest proposed "innovative" misstep - selling of SECU member mortgages to government sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac [link]. 

GSEs exist now primarily to prop up the 30-year fixed rate mortgage [link]. They only continue to exist because US taxpayers - that's you and me - guarantee foreign and domestic mortgage investors against loss on this financially risky mortgage loan product. 

You should note that these private, for profit companies went bust in the 2008 financial crisis and had to be bailed out by U.S. taxpayers - that's you and me.  When Fannie Mae and Freddie Mac went "belly up" U.S. taxpayers - that's you and me - had no choice but to pick up the pieces for these private, for profit companies.

Critics claim that a federal government guarantee of these GSEs "privitizes profits and socializes losses". When things are good private investors reap the rewards, when things go wrong U.S taxpayers - that's you and me - eat the losses. It's better known as: "Heads we win, tails you lose!"

✅ For the last 17 years, the U.S. government has owned and controlled ("conserved") Fannie Mae and Freddie Mac. Both are "wards of the state". 

There is much controversy and debate about what to do next with Fannie and Freddie to avoid another financial meltdown and crisis in the U.S mortgage market. President Trump has thrown out several alternatives [link].

The economic and political debate is fierce [link]. The future for these two problemmatic private companies highly uncertain.

😎 Why would our new/new "lending gurus" at SECU propose stepping into this mess? 

  Where is the SECU Board?