As Bend Real Estate professionals and as Citizens, I think we all want the economy to improve.
Please call your congressional representatives and ask them to support improved refinancing through Freddie Mac, and Fannie Mae.
Allowing everyone who has a current loan with these two GSE’s (which the public essentially owns) to refinance at current rates is simply a good idea, and it has substantial benefits to the whole economy, and in my opinion no downside.
The reason these mortgage GSE’s do not want everyone to refinance is that they make money off the spread between the current low rates and the existing mortgage rate of the holder.
Think about that, it’s valid that they make money, to provide their service, but…
Our government put into place ( and is currently keeping in place ) numerous policies and laws that caused this economic change in the U.S.
Yes the Banks were a big part of it, but who got rid of Glass Stegal? ( law that prohibited banks to make risky investments ) and replaced it with bill that allowed the banks to do what they did? The Congress.
Manufacturing in the United States vs China.
The Congress also gave China, Most Favored Nation trading status without requiring them ( or any other manufacturer outside our borders ) to meet the same standards for their manufacturing processes, as is required in the United States. This caused a massive outflow of manufacturing away from the U.S. because it is cheaper to manufacture with fewer restrictions ! It is simple, a company here could not compete, and we still do not require this equality. This one change would improve manufacturing here in the U.S. and provide better incomes, which would improve the economy and of course Housing and Real Estate.
And the third and last of my three economic issues to quickly discuss …
We need to have a better one, embrace natural gas for trucks, and move even more towards solar for more progress here transforming our economy away from Oil products.
What you can do.
So the final word: The Congress created and still holds in place several causes for the Housing bust.. and it owes it to the American people to do the right thing and find a way to allow everyone to refinance at current rates. Think about it, we own these loans, and the loans have lower risk, if the payments are lower. The homeowners have lower payments, and most likely spend that money in the economy boosting jobs.
See more at my blog about Bend Real Estate and Proactive Bend Oregon.com . Thank you if you read this far, and please contact your representative to get this straightforward good idea fast tracked to approval.