Would Eliminating the GSEs Doom the 30-year Mortgage?

Most people recognize the GSEs should be eliminated because their implied government backing is now explicit. These entities are not private entities, although many private investors would like them to be so they could profit off the government guarantee.

Whenever people start discussing how to reform or terminate the GSEs, invariably someone will try to scare everyone by claiming US housing finance will cease to function, the housing market will crash, or some other nonsensical doomsday scenario will come to pass.

I suspect the current round of fear mongering over GSE reform comes from GSE investors who want these entities preserved and turned over to private enterprise. For whatever the reason, this time around, the scare tactic is the elimination of the 30-year mortgage — a loan product that existed before the GSEs and will continue long after they’re gone.

30-year fixed-rate mortgage

The 30-year fixed-rate mortgage has been popular among progressives and conservatives alike because it is a good loan product. The reason the political left likes the 30-year loan is because it provides a means for average wage earners to acquire wealth.

via Would eliminating the GSEs doom the 30-year mortgage? – OC Housing News.

BIZCATALYST 360°
BIZCATALYST 360°https://www.bizcatalyst360.com/about/
We are an Award-Winning lifestyle, culture, and business new media digest, serving as the global hub for enhanced performance and well-being. With an emphasis on action, our 500+ international contributors empower people to transition from knowing what to do to actually doing it. All of this complemented by syndication relationships with a choice group of equally innovative media outlets. Today and every day, we simply deliver the very best insights, intelligence, and inspiration available anywhere. And we do it our way, placing our writers and our audience at the forefront. It's timeless. It's evergreen. It's simply good stuff. Period. More About BC360°

✅ PLEASE BE SURE TO LOGIN BEFORE COMMENTING | CLICK HERE FOR HELP & GUIDELINES ✅

🔴 DON'T MISS OUR LATEST & GREATEST | CLICK HERE TO HAVE @BC360° TODAY DELIVERED 🔴

TRENDING VIDS

Must Read