Of course not, they merely make homebuying less plausible for those with limited budgets. An alternative idea is to move subprime borrowers into lower-cost loan products. To make this possible, we recently began offering borrowers with slightly impaired credit our Timely Payment Rewards mortgage. It begins at 2 percent below the subprime rate, and if the borrower makes payments on time for 24 months, the rate automatically drops one more percent. And we are going to make sure more loans sent to us are approved by us.
Higher premiums are higher costs, and higher costs simply limit the pool of potential owners.
A new bill just introduced in Congress, H.R. 3703, would end HUD's right to oversee Fanne Mae and Freddie Mac. Given that Fannie Mae and Freddie Mac are both well-run and profitable, it would make more sense to privatize HUD under their supervision. If you want solid, reliable information about residential real estate financing, written in a thoughtful, convincing style, this is your source. For additional information, press here . It sometimes happens that a property for sale attracts several offers.