Home buyers could be squeezed by higher interest rates and need larger downpayments if Congress agrees with an Obama administration plan to phase out mortgage-guarantee giants Freddie Mac and Fannie Mae.
Southwest Florida lenders, home builders, real estate agents and other housing industry participants agree on the need to reform the nation’s housing finance system, of which the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. are a large part.
But most echo national sentiments that the federal government needs to continue to play some role as a backstop going forward.