Transitioning to Alternative Structures for Housing Finance

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  1. DeDude commented on Mar 16

    So this system of Fannie and Freddie mortgages is so efficient that they have to increase fees such that the private sector can become competitive with them. I thought the private sector was so supposed to wipe out the big clumsy wasteful gobinment apparatus any time and day because the market forces drive them to levels of efficiency that are way beyond unionized gobinment organizations? I see why some people want to force F&F to raise their prices in defense of their outdated narratives. Next thing you know people would begin to question why we let the rent-seekers suck society dry.

  2. willid3 commented on Mar 16

    whats the point of ‘privatizing’ mortgages, if you still have to have government support? and just what does business today do that will take 30 years to remove its risk? i suspect that if we did the entire private market option, that the 30 year note would disappear, and the 10 and 20 year notes would be at risk of doing the same. it would probably be like it was before they existed, where the longest note was 10 years, and it rolled over. but that roll over wont likely be in the new private market. so to make that even partially work,. house prices would have to come down as lot, say 50-75%. and rates will be much higher, and getting as mortgage will be extremely difficult.

    so why are we doing this again ?

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