Some guarantee will survive Fannie, Freddie

Cape Coral Century 21 Birchwood Realty Rick Swift Realtor "Where your new home begins" http://www.rickswift.com/ http://www.rickswift.listingbook.com/


Some guarantee will survive Fannie, Freddie


WASHINGTON – Aug. 20, 2010 – According to the National Association of Realtors® (NAR), the dominant thread at this week’s federal housing conference on the future was about retaining the Federal Housing Authority (FHA) to ensure finance availability for lower- and moderate-income households, and the re-shaping of Fannie Mae and Freddie Mac into something that backstops losses after private insurers take their lumps. The Treasury and the U.S. Department of Housing and Urban Development hosted the conference.

At least for the near term, most of the academics and business leaders participating seem to agree: Some form of government backstopping of the mortgage market is necessary, but it won’t be under the terms that we’ve grown familiar with. Rather, the guarantee would be absolutely explicit, not implicit like we saw with Fannie and Freddie; and, in the view of some, it would take the form of a limited, maybe even catastrophic-type, backstopping in which the private sector takes first-risk position http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=245507&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+floridarealtors+%28Florida+Realtors%29