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
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.
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.
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.
buying economy existing families good homes interest optimism people record risen shows strength though time underlying
People are buying new homes, existing homes at record levels. And that just shows the underlying strength of the economy and the optimism of families that this is still a good time to buy a home even though interest ratesÊ on mortgages have risen substantially,
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.
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 believe businesses cuts environment fiscal overall policy providing tax
We believe our overall fiscal policy is providing an environment where businesses can prosper, but we believe tax cuts should be aimed at people.
progress
We think we can make progress on upper-income premiums.
american-businessman continue expect housing sort strength
We're just sort of like the Eveready bunny. And we just keep going and we expect that to continue because of the strength of that housing market.
unemployment food-stamps medicaid
The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid.
government shrinking growing
We are shrinking the size of the federal government as a percent of our economy from over 21 percent of the economy to 19 percent of the economy. At the same time, we're growing the private economy.
home track gone
That is - the reason for that is that home prices are only going to go up. Now, they've never gone down nationwide in our - since we've been keeping track of this.
moving believe average
They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up.
moving long individual
Right now the long-term investors are telling us that they're not as concerned about inflation and so we're seeing these rates now move into the marketplace and out to the street - rates that individuals can get.