What Role Should Government Play In Mortgage Industry?

A prominent Republican says the federal government should continue to play a role in the mortgage industry.

This Republican leader wants to dramatically scale back the government’s role and to wind down Fannie Mae and Freddie Mac.

Just as they did with Libya, the Obama administration is once again leading from behind. They’ve offered some vague guidelines about what to do with Fannie and Freddie but they’re letting Congress do the heavy lifting.

Home prices are still falling so politicians fear exacerbating that and increasing the number of foreclosures with a rapid removal of government subsidies for mortgages.

Reuters reports: Democrats and Republicans alike agree the U.S. system of housing finance needs to be revamped. They disagree on the extent to which government support should be maintained.

Currently, through Fannie Mae, Freddie Mac and the Federal Housing Administration, the government backs about 90 percent of all new mortgages. The level of future government support will be determined by legislative changes that could take years to enact.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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