Podcasts & RSS Feeds
Most Active Stories
- This ballot proposal is critical to Michigan's economy, but most people won't bother to vote on it
- Don't like the water shut-offs in Detroit? Now you can pay someone's overdue water bill
- Approaching construction on the highway? Experts say the "zipper merge" can help
- Some think their immigrant ancestors were the last that should be allowed in the U.S.
- Michigan Republican Party's tactics remind me of Watergate, because both were unnecessary
Thu June 9, 2011
Fannie Mae, Freddie Mac should be replaced, says Michigan Congressman
Congressman Gary Peters says Fannie Mae and Freddie Mac must go. But he says they have to be replaced with something else.
The two quasi-private groups provide a federal guarantee for home mortgages.
Taxpayers had to bail out Fannie and Freddie after the housing sector meltdown.
Some people in Congress don’t want to replace Fannie and Freddie with anything, and just let the free market take over.
But Peters says without a federal guarantee, banks would stop offering 30-year mortgages.
"With the elimination of the 30 year mortgage, you’d also eliminate the ability of many people to pursue the American dream and own their own home," he says.
Peters proposes replacing Fannie and Freddie with private associations. The associations would be backed by a privately-financed system similar to the F-D-I-C, which guarantees bank deposits.