Under the proposal, Fannie and Freddie would be allowed to charge higher rates to borrowers in order to compensate for the risk of guaranteeing refinanced loans that are underwater and more likely to result in default.
The private sector can not compete therefore and possibly essentially leaving the whole mortgage market in the hands of F&F. Higher rates, more profit, no debt come this spring/summer, and a total rising housing economic outlook for 2013 as reported.
We all hope that this will happen. Getting big brother out of the picture will make all of us money. This is a great topic and it would be nice to hear what everyone thinks in regards to the when F&F may exit C-ship. Everyone excluding Barry.
Exit time from C-ship:
Any other thoughts: