I personally could not give a damn whether or not the 30-year fixed rate mortgage survives.
I don’t think I’ll ever be in a position to buy a home.
I have no assets. I’m judgment-proof. Go ahead and sue me. What will you get? A couple of old suits?
I don’t fetishize the 30-year fixed rate mortgage for America. So what if it has been the preferred method of financing mortgages for generations. What’s sacred about that?
I say get rid of government interference and subsidies to housing and let the free market sort things out.
Marketwatch reports: Fannie and Freddie have long been crucial to the housing market, guaranteeing or owning roughly 50% of the residential mortgage market. Including Federal Housing Administration loans, the government was responsible for about 95% of all U.S. mortgage origination between 2008 and 2010, according to a Bank of America analysis.
The two firms currently charge a fee for guaranteeing credit risk.
Legislators are seeking to reform the two companies, with many Republicans calling for a virtually privatized system in which the government’s role in the mortgage market would be significantly reduced, in part, by making government guarantees more expensive.