US Government Role in Home Financing to be Reduced

Treasury Secretary Tim Geithner was interviewed this morning on CNBC regarding the revised role of Fannie Mae, Freddie Mac and FHA in the housing mortgage business.  Geithner indicated the role of the US Government will be reduced relative to what happened leading up to the latest housing debacle.

The pace of this reform will be over the next 5-7 years, a pace that is too slow for some.  Geithner indicates this pace is necessary so as not to destabilize a fragile housing market.  Other analyst on CNBC indicated that this pace is not fast enough.

Components of the reform include a minimum of 10% downpayments and a higher fee for the government backed securities.  Geithner says the process will encourage private sector involvement in the business of mortgage loan guarantees, although the role of the US Government in mortgage backed securities will not go away.  Hopefully this will be a good thing for the housing market going forward.

Thank you,

Richard Acree

Comments in this blog posting are the copyrighted intellectual property of Richard Acree, President, HABITEC Home and Building Inspections, LLC,  and are intended to educate and otherwise assist home owners, sellers and buyers, building owners, sellers and buyers, realtors, real estate investors, property managers, and lenders in the process of owning, buying or selling homes or commercial buildings.  HABITEC is a residential (home) and commercial building inspection company serving Middle Tennessee including Nashville, Brentwood, Franklin, Murfreesboro, Smyrna, Mt. Juliet, Hendersonville, Dickson, Belle Meade, Columbia, Spring Hill, Lebanon, Gallatin and more!  In addition to building inspections HABITEC offers Environmental Services for mold assessments, radon testing and water quality analysis.  Additional information about HABITEC can be found on our website at http://habitecinspections.com, or call 615-376-2753. 

Richard Acree is the author of  the HABITEC Home and Building Inspections blog at ActiveRain, WordPress, and Blogger, and Founder of the ActiveRain Group Tennessee Home and Building Inspectors.  All are welcome to join and comment on those blogs and group.   You can also follow HABITEC on Facebook and Richard on Linked.  Thank you!

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