US Treasury Proposals Signal Costlier Home Loans and Higher Deposits on New Purchases and the Winding Down of Freddie Mac and Fannie Mae.
February 24, 2011 - Federal subsidies to the US housing market cost the taxpayer $1.5 trillion per year. Under US Treasury proposals, this subsidy will be phased out in the next ten years and the two federal loan giants, Fannie May and Freddie Mac will be wound down. The proposals are part of the revamping of the US housing market, which was at the center of the recent financial crisis, however there are dramatic implications for homeowners as well as the home finance industry.Continue reading
