This post is based upon information found at http://www.mortgagenewsdaily.com/02112011_future_of_housing_finance.asp On that page you will find a link to a Report to Congress ( http://www.treasury.gov/initiatives/Documents/Reforming%20America%27s%20Housing%20Finance%20Market.pdf ) that lays out a plan to phase out Freddie and Fannie.
The proposal is multi faceted so I would suggest anyone interested in the Direction the mortgage markets will take should read the Report to Congress. These changes will affect your borrowers ability to obtain loans.
Some key points as I see them are:
1) Increase required Downpayments by Borrowers
2) Increase FHA's Mortgage Insurance Premiums
3) Increase the Cost of Mortgages to a point that Private Money Markets will replace Freddie and Fannie.
I am sure over time you will see many posts and articles about changes. Please follow the links provided and read for yourself what is being proposed.
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