Category: Housing

The Trump administration may privatize Fannie Mae and Freddie Mac — and it could disrupt the nation’s housing-finance system – MarketWatch

The Trump administration may privatize Fannie Mae and Freddie Mac — and it could disrupt the nation’s housing-finance system – MarketWatch

A fully privatized mortgage market will fundamentally change mortgage credit. The US is the only mortgage market in the world with a fixed rate for 30 years. It only works because most mortgages have no credit risk. Once you remove the govt guarantee you then have both credit risk and interest rate risk.  Investors facing …

+ Read More