On Monday, the Washington Post published a little-noticed article about changes in the mortgage market since Freddie Mae and Freddie Mac were taken over a year ago. Now “only one lender of consequence remains: the federal government.” Yes, the mortgage industry has been nationalized.
Almost 90 percent of all new home loans are either funded or guaranteed by taxpayers. And the government has granted itself the sole power to decide who is, or is not, qualified to get a loan. “As a result,” reports the Post, “many borrowers among both poor and rich are frozen out of the market.”
In addition to freezing people out – including those who can afford mortgages – the government has put taxpayers on the hook to cover loans the feds make…that go bad. There’s growing evidence “that many loans being guaranteed by the government have a significant risk of defaulting. Delinquencies are spiking.” In addition, the Federal Housing Administration is already running through its supposed “financial cushion” to cover bad loans.
Thus far – in under a year – the feds have spent over $1 trillion taking over the mortgage sector – and Fannie and Freddie are $5 trillion in hock.
So – we’ve got “Universal Mortgage Care,” with single-payer public-option mortgages run by the government. In less than a year – it has squeezed out all competition, rationed services, and is running in the red.
You still wanna talk health care?
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