The Big Mortgage Reform Debate
Freddie Mae and Fannie Mac have been backers of residential home loans in the decades until 2008
when the two entities were placed under federal conservatorship after the housing market collapse. Law
makers are still divided...
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The Big Mortgage Reform Debate
Freddie Mae and Fannie Mac have been backers of residential home loans in the decades until 2008
when the two entities were placed under federal conservatorship after the housing market collapse. Law
makers are still divided as to how to proceed next.
The 30-year fixed rate mortgage was a trusted standby for many years until the real estate collapse
which ultimately resulted in recesssion. Some politicians are in favor of replacing Fannie and Freddie
with a mix of private lending and government institutions. Private lending institutions include
http://www.loandepot.com/ The propsed bill from Sens. Tim Johnson is expected to lead to lower risk
for financial institutions but higher interest rates from borrowers.
Other politicians suggest restoring Fannie Mae and Freddie Mac as government sponsored enterprises
operating in the public interst. The dismantlement of these two entities may lead to increased federal
regulation concerning PMI (private mortgage ins
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