There’s nothing wrong with these loans, but there’s no good policy reason why taxpayers should subsidize them. One remarkable feature of the current debate in Washington about the future of Fannie Mae and Freddie Mac is the prominence given to one kind of mortgage—the 30-year, fixed-rate loan. The proponents of a continuing role for government in housing finance are going from office to office on Capitol Hill arguing that, without government backing, American homeowners will not have access to this particular loan. Many legislators believe that the 30-year, fixed-rate mortgage is good for homeowners and good for the government to support as a matter of policy.
What’s so special about the 30-year mortgage?
Most Popular Articles
Latest Articles
-
Former Ginnie Mae president reacts to lawmaker’s reverse mortgage securities letter
-
Financial planner: Reverse mortgages can help retirees with high property taxes
-
MBA issues support for real estate finance bills debated by Congress
-
Supreme Court denies HomeServices’ petition in commission suit
-
Home prices kept climbing at a brisk pace in March: First American