Government-sponsored mortgage giants Fannie Mae and Freddie Mac must be shut down. Both distort the market by issuing mortgage-backed securities with subsidized government guarantees that the mortgages will be repaid. Read More.
Between 2003 and 2006, home prices rose dramatically, but then they fell abruptly in 2007 and thereafter. While many believe that the main cause of the boom was easy access to credit in the form of subsidized interest rates, others have focused on different issues. Read More.
While last fall’s plan was limited to homeowners whose mortgages were held by Fannie Mae or Freddie Mac, the newly announced version allows homeowners whose mortgages are held by private-sector lenders and entities other than Fannie Mae and Freddie Mac to refinance their mortgages. The new plan uses the Federal Housing Administration (FHA), an entity that is already on the verge of needing a major taxpayer bailout. All homeowners, regardless of who owns their mortgages, would have access to streamlined refinancing methods and lower fees. Read More.