FIXING THE U.S. HOME LOAN SYSTEM
The U.S. home loan system is broken. The U.S. Government has been virtually the sole provider of funding for home loans since private money fled the markets in the Crisis of 2008. If you are a home buyer today, the odds are 95% that your home loan will be bought by Freddie Mac, Fannie Mae, or the FHA. It will end up in a mortgage-backed security, snapped up by investors without concern for the foreclosure and short-sale plagued housing markets, because the security is thought to be backed by the full faith and credit of the U.S. Government.
This situation is, of course, untenable. The Federal Government is the sole financier of home lending in the United States as the result of a massive risk explosion that resulted from intrusion by that same government into the nation’s housing markets over a period of many years. The U.S. Treasury and the Department of Housing and Urban Development have stated they intend to restructure the nation’s home loan system, and to sharply reduce the operations of Freddie Mac and Fannie Mae. They recognize that the use of private capital for home loans and the purchase of mortgage-backed securities is fundamental, and plan to reduce the government footprint on housing finance.
Those actions will ultimately affect home prices, home buyers, and those who intend to build home equity for future financial security. The actions will also impact all who service the home markets: builders, construction businesses and employees, realtors and lenders. To the extent that the government relinquishes its domination of home lending, and when the housing markets have settled into whatever is their new normal, there is a possibility that the home loans with which we are so familiar may have changed forever. The huge losses suffered by lenders and investors in this decade will dictate that, and the realization will set in that sub-prime lending was just the straw that broke the camel’s back.
Alan Hillsdale skillfully builds his case for a sequence of government actions that are necessary to assure that the planned home loan system restructure has the best chance of success. His analysis of the root cause of the boom/bust home markets leads to a set of practical actions that he presents as a strategic plan. This is required reading for anyone who has an interest in, or a stake in, single family residence real estate.
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This situation is, of course, untenable. The Federal Government is the sole financier of home lending in the United States as the result of a massive risk explosion that resulted from intrusion by that same government into the nation’s housing markets over a period of many years. The U.S. Treasury and the Department of Housing and Urban Development have stated they intend to restructure the nation’s home loan system, and to sharply reduce the operations of Freddie Mac and Fannie Mae. They recognize that the use of private capital for home loans and the purchase of mortgage-backed securities is fundamental, and plan to reduce the government footprint on housing finance.
Those actions will ultimately affect home prices, home buyers, and those who intend to build home equity for future financial security. The actions will also impact all who service the home markets: builders, construction businesses and employees, realtors and lenders. To the extent that the government relinquishes its domination of home lending, and when the housing markets have settled into whatever is their new normal, there is a possibility that the home loans with which we are so familiar may have changed forever. The huge losses suffered by lenders and investors in this decade will dictate that, and the realization will set in that sub-prime lending was just the straw that broke the camel’s back.
Alan Hillsdale skillfully builds his case for a sequence of government actions that are necessary to assure that the planned home loan system restructure has the best chance of success. His analysis of the root cause of the boom/bust home markets leads to a set of practical actions that he presents as a strategic plan. This is required reading for anyone who has an interest in, or a stake in, single family residence real estate.
FIXING THE U.S. HOME LOAN SYSTEM
The U.S. home loan system is broken. The U.S. Government has been virtually the sole provider of funding for home loans since private money fled the markets in the Crisis of 2008. If you are a home buyer today, the odds are 95% that your home loan will be bought by Freddie Mac, Fannie Mae, or the FHA. It will end up in a mortgage-backed security, snapped up by investors without concern for the foreclosure and short-sale plagued housing markets, because the security is thought to be backed by the full faith and credit of the U.S. Government.
This situation is, of course, untenable. The Federal Government is the sole financier of home lending in the United States as the result of a massive risk explosion that resulted from intrusion by that same government into the nation’s housing markets over a period of many years. The U.S. Treasury and the Department of Housing and Urban Development have stated they intend to restructure the nation’s home loan system, and to sharply reduce the operations of Freddie Mac and Fannie Mae. They recognize that the use of private capital for home loans and the purchase of mortgage-backed securities is fundamental, and plan to reduce the government footprint on housing finance.
Those actions will ultimately affect home prices, home buyers, and those who intend to build home equity for future financial security. The actions will also impact all who service the home markets: builders, construction businesses and employees, realtors and lenders. To the extent that the government relinquishes its domination of home lending, and when the housing markets have settled into whatever is their new normal, there is a possibility that the home loans with which we are so familiar may have changed forever. The huge losses suffered by lenders and investors in this decade will dictate that, and the realization will set in that sub-prime lending was just the straw that broke the camel’s back.
Alan Hillsdale skillfully builds his case for a sequence of government actions that are necessary to assure that the planned home loan system restructure has the best chance of success. His analysis of the root cause of the boom/bust home markets leads to a set of practical actions that he presents as a strategic plan. This is required reading for anyone who has an interest in, or a stake in, single family residence real estate.
This situation is, of course, untenable. The Federal Government is the sole financier of home lending in the United States as the result of a massive risk explosion that resulted from intrusion by that same government into the nation’s housing markets over a period of many years. The U.S. Treasury and the Department of Housing and Urban Development have stated they intend to restructure the nation’s home loan system, and to sharply reduce the operations of Freddie Mac and Fannie Mae. They recognize that the use of private capital for home loans and the purchase of mortgage-backed securities is fundamental, and plan to reduce the government footprint on housing finance.
Those actions will ultimately affect home prices, home buyers, and those who intend to build home equity for future financial security. The actions will also impact all who service the home markets: builders, construction businesses and employees, realtors and lenders. To the extent that the government relinquishes its domination of home lending, and when the housing markets have settled into whatever is their new normal, there is a possibility that the home loans with which we are so familiar may have changed forever. The huge losses suffered by lenders and investors in this decade will dictate that, and the realization will set in that sub-prime lending was just the straw that broke the camel’s back.
Alan Hillsdale skillfully builds his case for a sequence of government actions that are necessary to assure that the planned home loan system restructure has the best chance of success. His analysis of the root cause of the boom/bust home markets leads to a set of practical actions that he presents as a strategic plan. This is required reading for anyone who has an interest in, or a stake in, single family residence real estate.
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FIXING THE U.S. HOME LOAN SYSTEM
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Product Details
BN ID: | 2940016022178 |
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Publisher: | Alan Hillsdale |
Publication date: | 01/16/2013 |
Sold by: | Barnes & Noble |
Format: | eBook |
Pages: | 176 |
File size: | 3 MB |
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