Tuesday, December 3, 2013

Goodbye American Mortgages

Are mortgages as we know them about to disappear? Does the removal of two of the most important players in American mortgages - Fannie Mae and Freddie Mac - threaten the very foundation of the American economy?

Dick Bove, vice president of research at Rafferty Capital thinks so, and as one of the most widely-respected banking analysts in the world, his opinion matters.

Check out the complete article here:

If true, the importance of seller financing in the housing industry will increase over time. Post your thoughts to this blog here, and let me know what you think.

Happy investing.

1 comment:

Unknown said...

Thanks for forwarding the article.

While may be a little early to declare the end of the traditional mortgage market as we know it, one thing is clear rates for 30y fixed rate mortgages will go up!

It is only a matter of how much and how quickly.

We will also see more and more adjustable products in the future. The good news for buyers and sellers is that the government will continue to subsidize home ownership. I think it is safe to say that qualified buyers will always find good options in the USA. Congress just does not want to have to bail Fannie or Freddie out again anytime soon.

Next on the horizon is the QM or “Qualified Mortgage” rules that go into effect on the 1st and at least borrowers will be able to compare and be assured the terms of loans are clear.

Paul Scobee
Mortgage Consultant / Washington / California
Direct: 206.455.0995
Office 425.602.1970