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What Happens If Freddie And Fannie Disappear

The Obama administration held hearings this week to discuss possible solutions to the current problems affecting how mortgage loans are made. Since approximately 90% of mortgage loans are backed by one of the governmental agencies, they realize the importance of coming up with a better system that takes the risk away from the government in the event the loans fail. This article explores some possible options. The bottom line is to lower the exposure and cost to taxpayers on these matters. You can count on the fact that whatever change is made here, it will result in higher costs to the home buyer. Read more

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