Instead of reducing their role in the U.S. mortgage market as lawmakers assured voters, Congress has increased the government's part in the home mortgage market, and is expected to keep a major portion of Freddie Mac and Fannie Mae under government control for at least a decade.
Under the agreement to extend the payroll tax cut extension for two months signed into law, the government will divert monies from Freddie Mac and Fannie Mae to pay for “general government expenses.” The move is the first time that the federal government has directed funding away from Fannie and Freddie, expanding the role of the government backed lenders
Congress also approved an increase in jumbo mortgages insured through the Federal Housing Administration in November, just two months after reducing the limit to allow more homeowners with larger mortgages to refinance loans and take out new mortgages at lower rates insured by the government.
Read the rest of the article at Housing Predictor
No comments:
Post a Comment