The decision follows the advice of his senior economic and housing advisers, who favor maintaining the government’s role as an insurer of mortgages for most borrowers.
The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with significant new constraints, according to the Washington Post.
A decision to preserve a major government role would mark a big milestone in the effort to construct a new housing policy from the wreckage of the mortgage meltdown and could mean a larger part for Fannie and Freddie than administration officials had signaled.
However, the White House has not confirmed that any new plan on mortgages have been decided on by the President yet.
Moreover, the proposal is likely to draw criticism from many Republicans, who blame the financial crisis on policies they say overly encouraged the housing market. In addition, many economists, including some who have worked in the White House under Obama, consider the federal role harmful to the free market.
Nevertheless, if this approach became law, it probably would keep in place the kind of popular home loans that have been around for decades; 30-year fixed-rate mortgages with relatively low interest rates.
(아주경제 앤드류 이 기자)
Copyright ⓒ Aju Press All rights reserved.