Obama: Feds Will Continue to Play Role in Mortgage Market

• August 16, 2011
• 2 Comments

by UrbanTurf Staff

President Obama has decided that the federal government must continue to insure mortgages for most borrowers, sources have told The Washington Post.

From an article posted on the newspaper’s website late Monday night:

The decision follows the advice of his senior economic and housing advisers, who all favor maintaining the government’s role as an insurer of mortgages for most borrowers. The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with new significant constraints, said people knowledgeable about the discussions.

Recall that in February, the administration released a report that offered three proposals for how to reduce government support of the mortgage market. Of the three options, The Post is reporting that the president favors the one where the federal government maintains a large role, but “introduces several changes to reduce the chances that another taxpayer bailout would be needed.”

While the article indicated that the president has made a decision, an official statement runs counter to that, noting all three options outlined in the paper are still under consideration.

For the full article, click here.

This article originally published at http://dc.urbanturf.com/articles/blog/obama_feds_will_continue_to_play_role_in_mortgage_market/3989

2 Comments

1. East_H said at 3:19 pm on Tuesday August 16, 2011:
   I guess this means that home prices will remain artificially inflated for a least another few years. As a homeowner, I'm glad that my property value won't take a hit. Sometimes seems like rearranging the deck chairs on the Titanic, however.

1. swested said at 5:11 pm on Tuesday August 16, 2011:
   They've been doing such a fabulous job thus far, I can't wait to see what is in store in the next few years. /sarcasm. We headed for quite a disaster.