Franklin Raines
Franklin Raines
Franklin Delano "Frank" Rainesis an American business executive. He is the former chairman and chief executive officer of the Federal National Mortgage Association, commonly known as Fannie Mae, who served as White House budget director under President Bill Clinton. His role leading Fannie Mae has come under scrutiny. He has been called one of the "25 People to Blame for the Financial Crisis" according to Time magazine...
NationalityAmerican
ProfessionBusinessman
Date of Birth14 January 1949
CountryUnited States of America
year
This was an extraordinary year for Fannie Mae in every respect,
believe housing strong year
It will be the second-best year in housing history, and we believe it will be a very strong year for Fannie Mae,
affect automated billion bit companies expensive fun half internet invested largest last million money mortgage moving obligation people quite sector using year
The mortgage is the largest obligation that people take on and it's very expensive to get a mortgage and very painful. It's not a fun process. So we've invested quite a bit of money in using the Internet and e-commerce to make it easier. Fannie Mae has become one of the largest e-commerce companies in the world. Last year, we underwrote through automated underwriting and electronically, two and a half million loans, $300 billion of transactions. This year will be over $400 billion. So e-commerce is moving into the mortgage sector and it's going to affect everybody.
basis beat believe believes fed funds good housing interest market percent points question raise rates rise unsure whether year
I think the Fed is going to raise interest rates over the rest of this year. I think it will go up at least 100 basis points before the year is out. So the Fed funds rate will rise from about 6 percent to at least 7 percent. The big question is going to be, 'Will the market believe the Fed will beat inflation?' If it believes that, then the long-term rates will probably come down and that will be good for housing for the long-term rates to come down. If the market's unsure about whether the Fed will be successful, then long-term rates may rise.
thinking years down-and
We think if the economy remains weak that we could see mortgage rates trail down and we think that we could see rates below seven percent into early next year.
years mortgage reduction
Well, we're just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates.
thinking years risk
I think if you go beyond a year - if this continues into the system in the out years, I think there is a risk and that - that we could have a negative reaction in the bond market and that will offset the good that was attempted to be done.
american-businessman buying good great home thinking time
Well, it's been great for new home purchasers, particularly first-time purchasers. I think this is a good time to be thinking about buying a home.
contrast creates happy ideas judged perfectly
It creates a contrast between their ideas and ours. We are perfectly happy to be judged by that contrast.
budgets constitution mechanism particular time unwise
We think that it's unwise to put into the constitution a mechanism that enshrines for all time a particular way of measuring the budget.
approach based fails heard issues last middle relief sat target tax time
Based on the presentation that we heard today, there are more issues then the last time we sat down, ... It fails to target tax relief on middle incomes as the president's approach would do.
progress
We think we can make progress on upper-income premiums.
bring consumers cost finance mortgage savings system variety ways wide
We are working on a wide variety of ways to bring to the mortgage finance system cost savings for consumers as well as lenders in the mortgage market,
american-businessman stimulus
Well, you know, we've got a lot of stimulus in the economy already from the tax cut, from the lowered interest rates, and also from the refinancing of mortgages.