Changes Coming in the Mortgage Industry...BUYERS BEWARE!!!

http://www2.timesdispatch.com/news/2011/feb/11/white-house-wants-limit-government-backing-mortgag-ar-836456/

The Obama Administration came out with three separate proposals yesterday reducing the governments role in the mortgage industry. All three proposals would undoubtedly lead to higher interest rates and costs for borrowers.

Based on the current economic status and how we got into this whole mess, I don't think anyone would disagree that changes are necessary for a vibrant economy and real estate market in the future. We are finally beginning to see some stability in the market, so is this the time to test the waters with those changes?

Laura Lafayette, CEO of the Richmond Association of Realtors, claims "we are very concerned that this move would severely limit financial options for prospective buyers." There is growing recognition that drastic action could upend the housing finance system, and in turn threaten the greater economy.

Check out the attached article in today's Richmond Times Dispatch to see what the three proposals entail and the local experts thoughts on where we are headed.