Volume 18 - Number 18
August 31, 2018
CBO Says Expect Rising Rates if Housing Market is Privatized
New housing finance structures created to increase private capital would leave borrowers with slightly higher interest rates but greatly reduce federal costs, according to a new report from the Congressional Budget Office. The report examined several structures, ranging from a fully federal guarantee on mortgage-backed securities to a largely private market. On a “fair value” basis, it will cost the federal government $19 billion over the next 10 years to backstop an estimated $12 trillion in Fannie Mae and Freddie Mac mortgage-backed securities. The CBO notes the cost “represents the estimated amount that the government would have to pay private guarantors to bear the credit risk of the new guarantees.”
Subscribers to Inside The GSEs have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.
Subscriber Log In
If you are a current subscriber or already purchased this article, please login below.
Already subscribe but haven't registered for all the benefits of the website?
Subscribe
This biweekly covers the housing-related government-sponsored enterprises with experienced, expert analysis.
Pay-Per-View
You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.
Please contact Customer Service if you need assistance: 1-800-570-5744
