Friday, April 22, 2011

Democratic Faction Unveils Plan to Retain 30-Year Mortgage Post-GSEs

The New Democratic Coalition has added the nation's housing finance system to its list of things to "modernize." They've outlined principles for following through with the wind-down of Fannie and Freddie while maintaining a limited government role to ensure access to the 30-year fixed-rate mortgage. But the debate is intense over whether the 30-year mortgage should stick around. With or without it, one research group says the numbers prove government guarantees aren't necessary to entice private investors.