Alternatives to the 30-year fixed mortgage rate are possible – Carson

by Anna Sobrevinas17 Jan 2017
Alternatives for the 30-year fixed mortgage rate are possible, said Housing and Urban Development Secretary nominee Ben Carson last week.

At his confirmation hearing before the Senate Banking Committee, the former neurosurgeon said he would “carefully evaluate the Federal Housing Administration's plan to cut annual premiums.”

This is after the HUD’s announcement last Monday that its planned 25-basis-point reduction of the annual premium would take effect on the 27th.

Carson also talked about the fate of Fannie Mae and Freddie Mac, emphasizing that he would not support a total market privatization.

Carson added that a 30-year mortgage sans a government guarantee is possible, but “you can't do it overnight.”

"It has to be a gradual change," Carson said. "I look forward to working with you and other members of this committee to figure out how we can shrink the liability of the taxpayer while still providing security to the individuals who want the loans."

Carson said he plans on touring HUD offices.

"I want to hear from people with boots on the ground who are actually administering programs,” Carson said. “Who are benefiting from the programs. I want to see what actually works and does not work."

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