Obama to offer options addressing mortgages

Posted by puguh on Friday, February 11, 2011

Obama to offer options addressing mortgages. Homebuyers will face potentially higher interest rates under any of three Obama administration options for reducing government support of the mortgage market, the price of ending the country's dependence on financially teetering housing finance giants Fannie Mae and Freddie Mac.

Here are the three scenarios:

• No government role, except for existing agencies such as the Federal Housing Administration.

• A government role that explicitly guarantees mortgages only when the market is in trouble.

• A government role at all times, though not through government-supported entities such as Fannie and Freddie.

Source: http://www.denverpost.com

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