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Side -- the banks story let's talk about the mortgage market and the housing market Fannie and Freddie.
Are gonna tighten -- requirements next year which likely is going to be that lending will tighten -- -- -- to mortgage holdings executive vice president says.
All this head when is gonna hurt recovery so you're very concerned about what Fannie and Freddie is either predicted to be doing -- probably is doing right now.
Well you know did the loan standards -- across the border -- right now your average agency loan has a like a score over 740 even an FHA loan has a focus or 700.
Yes and this week was that Fannie and Freddie will only be buying loans.
The fit within that tight box of -- rules and ability to repay rules of the consumer finance protection bureau announced.
That is going to be tougher for lenders to sell their loans into the secondary market next year which -- you really like -- banks that's that's that's that's that's the banks also non bank wonders.
I -- to be tough to find people who -- loans don't fit into those very tight requirements.
One of the things that we've seen though in this economy has been housing whether it's home building stocks that have been great for investors whether it's been the fact that consumers about -- about the value.
Other homes are you saying here that that that's going to be maybe go away or at least take a bit about heads even a decent condition.
That the -- the housing market metrics are all positive -- all going in the right direction the one headwind that could really affect the housing market right now is there's no money alone.
If if there's if there's -- not willing to issue loans because nobody -- willing to buy the loans on the secondary market that becomes a real strong headwind that could cause problems for the housing market next.
Hear what could the government do here I mean and looked at the rescue Fannie and Freddie -- -- controversy -- -- the US government is ever -- in its history but is there anything that the administration.
Could do now any type of new program that -- can -- -- prop up what could be a problem for the house.
I think I think what we need is a regulatory environment that makes it safe for private capital to come back into the market this -- -- Fannie and Freddie solution anymore.
Fannie Freddie -- -- charity camp for about 95% of all of all mortgages.
We need to do is have programs in place and make it safe for private capital to come back into the market -- -- mortgages again.
-- right where do you think that interest rates go mortgage rates by the end of the year we're now at.
Where we're at Alton was three -- 3.3 percent.
You know that the people projecting these things keep saying we're going to be -- -- at 4% or higher by the end of the year but -- the rates keep going down so it really it really is hard to to kind of get your hands are like a moving target.
-- we do we know you would know Rick shark thank you very much -- got into perspective for Vienna good word of caution from you as well thank you very much.
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