Housing reform.

[badmomma]

Now we all know that the government is trying to do away with Fannie Mae and Freddie Mac.

Both of these are government backed mortgage companies who were responsible for the current housing mess.

There are preposals on the table to try and fix the resulting mess.

Friday’s housing “white paper” presents three different visions for replacing mortgage finance giants Fannie and Freddie. The paper does not make a single recommendation, but broadly outlines alternative possibilities to reduce the government’s role in the mortgage market.
Specific reform proposals include:

• Shrinking the size of the portfolio of mortgages held by government housing finance agencies by at least 10 percent a year.
• Creating an insurance fund for mortgages much like bank deposit insurance, supported by premiums paid by lenders.
• Winding down government subsidies of mortgages by raising the fees charged to cover the risk of default.
• Limiting the government’s role in housing finance to Federal Housing Administration backing of mortgages, turning most of the market over to the private sector.
• Phasing in a 10 percent down payment requirement for government guaranteed loans.

It’s taken this long to wade into the morass of government-backed mortgages because there are no easy solutions. Simply shutting down the agencies would add billions of Fannie and Freddie’s future losses to the government’s already swollen debt, on top of the $150 billion already paid out to cover bad loans.

Now how do you suppose this is going to affect those who are into house flipping? I am not exactly sure myself and the whole mess just promises to make owning a home harder than ever. It is my belief that when all is said and done you are going to be pretty well off financially to even be able to look at a home let alone buy one.

[realestatehound]

I can tell you what will happen if any of these pass. Everyone but the rich will be out of the real estate business, realtors, flippers, everyone. Only the rich will be able to buy homes. No working class family will ever be able to own their on home. But the Chinese, rich Americans will buy everything for sale for penny's on the dollar. Rent will go sky high and you'd better get ready for another depression, because if the real estate industry falls so will the United States. It has been Obama's main goal to destroy this country from the beginning and if this happens he will have succeded.

[homealone]

You sure hit the nail on the head Realestatehound. Obama is ruining this country, but the worst part is that the people are allowing him to do it!

He should have been tossed out on his arse already!!

I sure as hell hope that he does not succeed in his plans on corrupting this country and literally giving it away to all others.

The things he has done, plans on doing and so on could very well be the end of the freedom in the United States and it is shameful!!

If more people spoke out maybe he wouldnt have a chance, but that doesnt appear to be happening.

Lets hope some miracle happens and Obama does not get the chance to cause more damage!!