Today, all indications are that the Obama administration is going to announce plans to exit the mortgage business. While the details of the plan have not yet been made public, predictions about the process include the following:
- Maximum loan limits will likely be lowered
- Fannie Mae and Freddie Mac will likely raise fees
- The end of the 30-year fixed-rate mortgage
The report will not actually present an action plan at this time, but rather several scenarios for the government to exit the mortgage business, reported Business Week this morning. Analysts believe this is likely a move to “provoke a discussion about the role of government in housing finance without roiling the housing market or locking President Obama to a particular solution.”
Keep your eye on this story today as it develops. The Bryan Ellis Real Estate Letter will post updates and reports throughout the day.
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