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    Future of home Mortgages

    Obama's Fannie, Freddie plan may boost mortgage rates

    Regardless of this longer-term overhaul, the administration suggested a range of new measures to make taking a government-backed mortgage more expensive and thereby making it more competitive for private sector firms to compete in offering mortgages.
    These include reducing the size of mortgages Fannie and Freddie can purchase, from $729,750 now to $625,500 by this fall. It also includes phasing a 10 percent down payment require for the companies. Finally, it includes raising fees the companies charge to insure loans.
    The administration also suggested scaling back FHA, which caters to first-time homebuyers with low down-payment options. It said it wants to reduce the size of loans that FHA can provide, increase fees by a quarter percentage point, and potentially raise the down payment require from 3.5 percent now to 5 percent in the future.
    This will be a changing of the landscape for borrowing.


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    Re: Future of home Mortgages

    These are good things IMO.




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    Re: Future of home Mortgages

    Not everyone can afford a house, no matter how easy they tried to make it.



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    Re: Future of home Mortgages

    Quote Originally Posted by Wesley View Post
    Obama's Fannie, Freddie plan may boost mortgage rates



    This will be a changing of the landscape for borrowing.
    I think you mean re-setting of the landscape. This is much closer to the way Fannie and Freddie used to operate, back when they were more viable entities.



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    Re: Future of home Mortgages

    Quote Originally Posted by synapticwave View Post
    I think you mean re-setting of the landscape. This is much closer to the way Fannie and Freddie used to operate, back when they were more viable entities.
    This is good news for me. I bought a bunch of stock when it was lower...and some when it was higher. So then not blowing up F&F is great news for me!

    As far as some people still not being able to own...I really think that it's their fault. Poor planning...poor money management...poor spending habits. For the most part anyway. I'm sure there are some people who have fallen on hard times due to illness etc. I'm not talking about that.



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    Re: Future of home Mortgages

    Yea this will be a good strategy to help the sagging housing market. Shrink the buying pool. Simple supply and demand show's that'll be a winning strategy. Good for the banks and FM & FM...but pretty ****** for homeowner's trying to sell.

    Oh well, I'm in my home.....just hope I won't have to sell anytime soon.


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    Re: Future of home Mortgages

    It will be interesting to see how long they take to implement these plans, the stories indicate that it may take up to 7 years before the plan is completed. I would think they would want to see the housing market bounce back more than it has before they go to make any changes...

    If they make any changes by this Fall and the housing market hasn't rebounded more than it has now there could be more catastrophic downfalls in the market.



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    Re: Future of home Mortgages

    Quote Originally Posted by CyBelieve View Post
    Yea this will be a good strategy to help the sagging housing market. Shrink the buying pool. Simple supply and demand show's that'll be a winning strategy. Good for the banks and FM & FM...but pretty ****** for homeowner's trying to sell.

    Oh well, I'm in my home.....just hope I won't have to sell anytime soon.
    I believe expanding the pool of potential homeowners is part of what caused this mess. Zero down loans, balloon mortgages...homes were being sold to people that could not afford to buy them and as a result there are a lot of homes sitting empty.

    It should be hard to acquire a 30 year loan...not easy to realize how long that really is when feeling the excitement of buying a house that you might or might not be able to afford. Obviously a serious commitment that some did not plan ahead and take seriously yet banks were thrilled to take the fees associated with the loan.



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    Re: Future of home Mortgages

    I think a lot has been fixed by the free market, that is, a lot of those that were making the riskier loans went under (part of the problem with us bailing some of those out).

    I dont think you necessarily need to have X percentage down (mortgage insurance has its place, and our low rate environment isnt exactly helping savings), but getting rid of things like interest only and neg-am loans, zero-income verification loans, etc has happened and it is a good thing. Banks that didnt verify income, assets, etc got what they had coming to them, and the free credit that these lax standards created played a part in housing values skyrocketing up.



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