gov’t conservatorship of Fannie/Freddie via FHFA is unconstitutional.

A federal appeals court has ruled that the Federal Housing Finance Agency is unconstitutional.

A three-judge panel for the US Court of Appeals for the Fifth Circuit ruled that the FHFA is unconstitutional because it does not answer to the president, according to a Washington Examiner report. The FHFA, created in 2008, oversees Fannie Mae and Freddie Mac.

“We hold that Congress insulated the FHFA to the point where the Executive Branch cannot control the FHFA or hold it accountable,” the panel wrote in its ruling.

The case stems from a lawsuit brought by shareholders of Fannie and Freddie, who took issue with the fact that the Treasury decided in 2012 to take all of the GSEs’ profits instead of just a 10% dividend. The court rejected that part of the lawsuit while agreeing that the agency was unconstitutional, the Examiner reported.

The issue in question was the fact that the FHFA – like the Consumer Financial Protection Bureau, which faced similar lawsuits – is run by a single director who cannot be fired by the president except for cause. It also doesn’t receive funding from Congress or feature a bipartisan commission. Those features mean it’s effectively insulated from executive oversight, the court found.

I'm guessing this will be appealed and go to SCOTUS for a final ruling.

My personal opinion on the matter is that I agree with the court. Freddie Mac was created specifically to compete with Fannie Mae. That doesn't really work when they are both controlled by the exact same entity.

More real estate tips at Program Realty Wix site


Please help a first timer out !!!

We fell in love with this place. It has everything we wanted and then some. We were pre-approved for $200k and this one is only $136k. However, our monthly payment would be $896, which is about 2-300 more than I was expecting. We bring home about $2600 a month, which would cover all our bills (mortgage included) leaving us with a little over $1000 for groceries, gas, kids activities, and groceries. My husband has offered to get a part time job to give us a couple extra 100 a month. I’m starting nursing school in the fall, which leaves me bringing in nothing atm, but after graduating in 4 years I’ll be able to provide a big boost to our income. I guess I’m looking for either reassurance that this could work or warnings to not do it. I’m just torn 50/50 here and would really like some advice. P.S. We are really looking to buy now because we have 3 kids in a 2 bedroom trailer. Renting something spacious enough in a good neighborhood would cost us more than buying. P.P.S. Located in Pa, about an hour outside of Pittsburgh

More real estate tips at Program Realty Wix site

Seller agreed to credit higher than amount allowed- what would you ask for instead?

My offer on a rural little cabin in the Olympic Peninsula, Washington was accepted, but it turns out the agreed upon amount for the seller to pay/credit for closing costs is $500 more than allowed by FM. The seller is a bank (Chase). So, I can potentially ask them for something else (appliances, a warranty, etc.). Considering that they're a bank and it's a fixer, what would you ask them for?


More real estate tips at Program Realty Wix site

Question about FHA

My wife and I have a mortgage on a townhouse (conventional) and primary residence(FHA). We want to purchase another property and we found a way to get another FHA Loan using father-in-law as a Non-occupant Co-Borrower. We won’t make any profit for 5 years but the in-laws will be paying down the mortgage. Is this a smart idea or are we setting ourselves up for failure? Thank you! (We will be putting 15k or 5% on a 300k house.)


More real estate tips at Program Realty Wix site

NYC Security Deposit and Lease Renewal

So around a month ago my friend confirmed her intentions to renew the lease of her 3 bedroom apartment contingent on her finding two other roommates (her current ones were moving out). She recently was offered another living situation and emailed the management company who said if she did not find three people to fill the apartment, they would keep the entirety of the security deposit. I understand this may not be the most convenient situation for the management company but are they legally able to keep the deposit if she had not yet resigned a new lease and completed the agreed upon duration of the previous lease? Thanks in advance for any help!

More real estate tips at Program Realty Wix site

Investing with a partner

Hi! I’m about to have a meeting with a soon to be partner. Looking to invest into a small rental to start off with. It’s a trusted partner who I’ve worked well with and have known for close to a decade. We’ve been in talks about this for years and finally pulling the trigger.

Still – I know things can come up. Any tips or recommendations on discussion points/things to watch out for? Any recommendations on forming our partnership? 50/50 ownership in an LLC? Protecting ourselves?

More real estate tips at Program Realty Wix site

62 year old father in California working from home and renting until now has <100k in savings and wants to move to a cheaper state like Nevada (Vegas maybe) and buy an apartment there. Where do we start?

Okay so my 62 year old father has been in the US (Bay Area) since 2005 and one of the major blunders he’s made is renting the same apt for 13 years and not buying a home until now due to laziness/unsurety of living in the US forever. As a result, he only has 100k in savings including his 401k.

Since his employer lets him work from home, he has the liberty to move to any state in the US and I was thinking Nevada (Vegas) due to the warm weather and the casino-atmosphere that we like.

He lives with my mom and I visit him sometimes. However, we have zero financial knowledge of the real estate market and don’t know where to start. His California apt lease ends next month and he needs to move out by then.

I have so many questions in mind: Should we buy an apt or a home? What sort of prices should we be looking at? How do we know if we’re not overpaying for a property? Should he take a mortgage and invest his savings, or just use up the savings to buy the property? What area is best to buy?

Where do we start?? Whom should we approach??

More real estate tips at Program Realty Wix site

Slow moving buyers agent?

My wife and I are looking at moving an hour away. We have a local family friend who is a real estate agent, he is actually a branch manager of a nation wide company. Originally we planned on just having him get us setup with financing and helping us sell our current home. But he said he was willing to make the hour drive to the new area were looking at. I decided it was worth a shot since we basically knew what we wanted we just wanted to see it in person first. So last Friday we drove down and looked at 3 homes that were under construction. Our agent called the listing agent (who was also a branch manager of the same agency chain) to get a feel and was told the development is moving slowly pre-sale wise however once the homes are move in ready they sell immediately. After a bit of discussion we decided we wanted to try and buy one of the three homes. Its now Wednesday and we are still being told the offer is being written up and as soon as its ready we will be informed. The last time we bought a house , we went and made the offer immediately after seeing the home and the offer took all of 20 minutes wire write up and send out.

Is there something more complex about new construction that takes much longer to create an offer? Or is he just getting side tracked with other clients and sees no rush in our offer since the house is months away from being completed?

I am honestly a bit disappointed because I feel I am being left in the dark, if I ask a question I am just told you will know when anything new comes up. If I ask how the process works, I am just given a short sentence answer and told its being worked on and not to worry about it.

We just keep hearing how hot the real estate market is and if you see something you need to act now.. But right now it feels like we are just relaxing and taking it easy? Thoughts?

More real estate tips at Program Realty Wix site