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Government support of 30-year mortgage questioned at confirmation hearing

Posted by Mehran Aram on Tue, Feb 19, 2019 @ 05:02 AM

The Senate Banking Committee met last week for the confirmation hearing of Mark Calabria, the Trump Administration’s nominee to oversee Fannie Mae and Freddie Mac – mortgage giants that guarantee roughly half of U.S. home loans. Calabria was a controversial choice as he has previously criticized government control of Fannie and Freddie and suggested that they should pull back their support of the 30-year mortgage.

However, Calabria acknowledged the importance of the long-term mortgage in his confirmation hearing on Thursday and added that if confirmed he would “carry out the clear intent of Congress, not impose my vision”. Calabria has such a loan himself on his Washington D.C. property, according to his nomination disclosures.

The nominee said he would scrutinize big banks if confirmed and committed to establishing firm affordable housing goals and preventing housing discrimination.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.

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Topics: Fannie Mae, Freddie Mac, government, Mortgage rates, Home Loans, 30-Year Mortgage, Mark Calabria