Bryan Ellis Real Estate Letter - Federal Reserve Recommends Expanding GSEs to Turn Housing Market Around

Bryan Ellis Real Estate Letter - Federal Reserve Recommends Expanding GSEs to Turn Housing Market Around: The proposal for expansion comes fast on the heels of the paxroll tax cut extension, which was approved for two months right before Christmas and will be financed for decades using the fees from GSE-guaranteed loans. Some might argue that this proposal is nothing more than a grab for more loans on which to assess fees, but in the letter to lawmakers the analysts insist that the move would simply get more people back in vacant properties, thereby removing a stumbling block to the housing recovery and a greater economic recovery. The move would potentially allow as many as 2.5 million more existing homeowners to refinance their loans through the Home Affordable Refinance Program (HARP), but it would also create an even greater debt situation for the GSEs and, as a result, for the American taxpayers funding Fannie and Freddie.