A good article that outlines how everyone is lining up in response to the Obama plan to phase out Fannie and Freddie. The major concern seems to be that it will affect the affordability of home ownership. Given the housing mess and everthing that caused it, is that such a bad thing?
First of all, if the cost of home ownership goes up, it might eliminate some of the people that maybe shouldn't be considering buying a home in the first place. Sorry to sound heartless but too many people have gotten into trouble "pushing the envelope" for a home mortagage. I'm all for anything that can be done to ensure that everyone can purchase a home but I'm not willing to pay for it with my tax dollars.
Secondly, I may be simplifying things here but the lenders will find a way to make these loans or their profits will be drastically reduced. And we know they won't let that happen. Questionable lending practices got us into this mess in the first place and now its time for them to step up. I'm sure they will be throwing millions of dollars at their lobbying effort and a lot of it will find its way into our elected officials pockets.
Just so everyone doesn't think I'm being "holier than thou", I'm renting right now and am happy to be doing so. It's the right choice for me at this stage of the game and may be the right choice for thousands of others.
I think it's time to call their bluff and live with the consequences!