In February, the Obama Administration proposed a few options to Congress with regard to reducing the government's role in the mortgage industry.  The question is, what impact might this have on the mortgage market? Rates have been slowly increasing over the last couple of months and the implementation of any of the administration's recommendations are expected to cause a further rise in purchase and refinance mortgage rates. 

Essentially, the Administration's recommendations want the government to be limited to an oversight role while private institutions serve as the main source for mortgage credit.  Suggestions for the changes include, the government having no role, except for agencies like the Federal Housing Administration; a government guarantee of private mortgages when the market is in distress, and; government insurance for certain mortgage investments that are guaranteed by private insurers.  Not only do these recommendations have the potential to raise rates, they also may reduce maximum loan amounts, tighten underwriting guidelines and more importantly, reduce the amount of folks who may qualify for a refinance or purchase of a home.

With the door to low rates slowly turning into a window, now is a good time to review your current mortgage while rates are still in favor of consumers.  Talk to a mortgage expert to see if improvements can be made to your home loan before new measures introduce changes to the mortgage industry.