Smart Money, a part of the Wall Street Journal digital network, is running an opinion piece reflecting on the Obama administration’s proposal to reform the mortgage industry.
The article outlines some of the effects that might occur should the proposals be approved by Congress. The effects are broken down to smaller mortgages, higher fees and bigger down payments. The article, which you can read in full here, suggests that if you are already planning to buy a home doing so before the proposed changes might save you some money.
With the GOP coming out in support of reform it looks certain that some form of re-structuring on Fannie Mae and Freddie Mac will occur.
With the market seemingly picking up here in Scottsdale this may lead to a small bubble of activity as people rush to close on deals before the changes take place in similar fashion for the the rush to get the First Time Buyers Tax Credit in 2010.