I don't believe at all that any of this will come any time soon. I just think it's interesting to see where the conversation is starting.
Thank you I had not seen this nor heard it before now. Why would you lower the conforming loan amount?
I've been watching some of these proposals. Will be interesting if or when and what they end up doing.
Which of the proposals, or combination will be enacted? Nobody knows, and as you say it's not happening anytime soon. But something has to be done.
Tim - In the short run, they're only looking to lower the maximum agency loan amount to 650,000 from 729,000 and increase the up front mortgage insurance premium for FHA loans from 1% to 1.25%. This isn't that big of a deal. The rest of the "white paper" adds a window of 10 to 15 years of transition, with the creation of a Federal Deposit Insurance Corp.-like insurance fund and new private entities to guarantee the new government-backed MBS. 10-15 years!!! LOL. A lot of this is politics.
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