VIDEO: Getting Your Neighbor’s Mortgage Off Your Lawn

This is an amazing fact from the Heritage Foundation: “Fannie and Freddie have received billions in subsidies, but the homeownership rate is only 1 percentage point higher than it was in 1968.” For more on this issue, here is an excerpt from a post by Amy Payne at Heritage and the video of an interview with Rep. Jeb Hensarling (R-Texas):

By Amy Payne

Did you know you are probably responsible for your neighbors’ mortgage payments?

What?

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Heritage expert Norbert Michel explained:

Nearly all new residential mortgages are currently being guaranteed by Fannie [Mae] or Freddie [Mac] because these companies buy mortgages from banks and then sell investments backed by the mortgages. And because the Federal government guarantees these investments, taxpayers foot the bill when people default on their mortgages.

And what good have Fannie Mae and Freddie Mac—and all their taxpayer backing—done?

“The U.S. does more to promote homeownership than most countries, but we’ve barely increased ownership, and total costs of owning a home have spiked,” Michel said.

Meanwhile, we’ve written about how the Treasury is keeping Fannie and Freddie off the books—and hiding billions in taxpayer guarantees in the process. […]

In an interview with Foundry Senior Contributor Genevieve Wood, Rep. Jeb Hensarling (R-Texas) talked about sponsoring legislation that would phase out Fannie and Freddie.

Read more: Heritage.org

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