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Politics : THE WHITE HOUSE -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (23370)	10/7/2008 2:31:17 PM
From: TimF	Read Replies (1) \| Respond to of 25737

Fannie and Freddie are no the only sources of a secondary market for mortgages. As for higher rates for 30 year fixed loans. If that's the market result than thats the way it should be IMO. I do think that there would be at least an insistence on larger downpayments and generally better credit (in other words there wouldn't be much of a sub-prime 30 year loan market), but I think you exaggerate the extent that those with good credit, and large downpayments would have difficulties getting such loans. Prior to Fannie/Freddie (institutions founded for this very purpose: to develop home ownership in America) thirty year mortgages were practically unheard of in America... As where many other things. Once again "Not existing before the government created agencies that supported it doesn't equal "wouldn't exist if government involvement ceased"." And even if it did mean that, then so be it.