By Doug Shipman, principal and CEO of Developers Financial Solutions
The Obama administration outlined three options to change the way home loans are financed, calling for the shutdown of mortgage giants Fannie Mae and Freddie Mac over the next five years and reducing or eliminating the role of government in helping borrowers secure mortgages
When implemented, the proposals will make it more expensive for borrowers to buy a home and thus restrict the availability of mortgages. It also marks a significant departure from past government policies, which entitled homeownership as a virtual right.
