Without Loan Giants, 30-Year Mortgage May Fade Away

[alp227]

WASHINGTON — How might home buying change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac?

The 30-year fixed-rate mortgage loan, the steady favorite of American borrowers since the 1950s, could become a luxury product, housing experts on both sides of the political aisle say.

Interest rates would rise for most borrowers, but urban and rural residents could see sharper increases than the coveted customers in the suburbs.

Lenders could charge fees for popular features now taken for granted, like the ability to “lock in” an interest rate weeks or months before taking out a loan.

Life without Fannie and Freddie is the rare goal shared by the Obama administration and House Republicans, although it will not happen soon. Congress must agree on a plan, which could take years, and then the market must be weaned slowly from dependence on the companies and the financial backing they provide.

Full story: http://www.nytimes.com/2011/03/04/business/04housing.html?partner=rss&emc=rss&pagewanted=all

[QC]

1. "the rare goal shared by the Obama administration and House Republicans"

If only....

[villager]

3. they meant "one of the many goals." A clear editing error...

n/t

[amandabeech]

2. Obviously, there's a lot of money for Wall Street in doing away with Fannie and Freddie.

Five year adjustable rate mortgages for all!

Gobama!!!

[Wilms]

4. Hey wait! You forgot to take the pot I piss in. n/t

[GeorgeGist]

5. I am so grateful that Obama shares ...

the Republican's greed.