How to Prevent the Next Mortgage Crisis

Four years ago, the financial crisis marked the climax of what had started as an apparently isolated problem in the subprime mortgage market. Ever since then, investors have been leery of once-popular asset-backed securities, relying almost entirely on bonds backed by government-sponsored enterprises Fannie Mae and Freddie Mac. Recently, though, the government has tried to reawaken the private market for mortgage-backed bonds. With proposals that would give investors incentives to take on part of the potential risk from loans that go bad, Fannie and Freddie, and by implication the U.S. Treasury and its implicit guarantee of those entities, wouldn’t be solely responsible for any consequences of future mortgage crises. (

How to Prevent the Next Mortgage Crisis.

This entry was posted in Banks, Economy, Finance, Fixed Rate Mortgage, Foreclosure Crisis, Mortgage, News, Real Estate, Refinance. Bookmark the permalink.

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