The US National Mortgage Corporation?
by Tom on September 8, 2009
in Market Musings
It’s not quite called that yet, but the reality is that Fannie, Freddie and FHA are about 90% of the mortgage market.
Expect more changes as that evolves.
Tom Vanderwell
Major U.S. Role in Mortgages Shaping Entire Market
While this made it possible for many borrowers to keep getting loans and helped protect the housing market from further damage, the government’s newly dominant role — nearly 90 percent of all new home loans are funded or guaranteed by taxpayers — has far-reaching consequences for prospective home buyers and taxpayers.The government has the power to decide who is qualified for a loan and who is not. As a result, many borrowers among both poor and rich are frozen out of the market.
Nearly one-third of those who obtained home loans during the boom years of 2005 and 2006 couldn’t get one today, according to mortgage industry analysts. Many of these borrowers were never really able to afford their homes and should not have gotten loans. But many others could, and borrowers like them are now running into tougher government standards.
