Comments on: Rep. Frank: FHA Loans & The Stimulus Package http://www.fhaloanpros.com/2008/01/rep-frank-fha-loans-the-stimulus-package/ The Unofficial Guide to FHA Loans & Mortgages Fri, 16 May 2008 03:20:29 +0000 http://wordpress.org/?v=2.0.5 by: Miranda http://www.fhaloanpros.com/2008/01/rep-frank-fha-loans-the-stimulus-package/#comment-2801 Tue, 29 Jan 2008 18:16:21 +0000 http://www.fhaloanpros.com/2008/01/rep-frank-fha-loans-the-stimulus-package/#comment-2801 One thing that does worry me about all these "fixes" is that they are short term. What happens in five years when the mortgages finally do reset? I suppose raising the conforming loan limit could help with that, allowing some to more easily sell their homes to buyers who would now qualify for larger loans. But what happens when Fannie Mae and the others have these riskier loans? None of this fixes underlying problems with how the mortgage industry has worked for the last 20 years or so. One thing that does worry me about all these “fixes” is that they are short term. What happens in five years when the mortgages finally do reset?

I suppose raising the conforming loan limit could help with that, allowing some to more easily sell their homes to buyers who would now qualify for larger loans. But what happens when Fannie Mae and the others have these riskier loans?

None of this fixes underlying problems with how the mortgage industry has worked for the last 20 years or so.

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