Categorized | Finance and Mortgage

Mortgage-Backed Securities Sales Yields $25 Billion for United States

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The taxpayers of the United States were the big winners in the total sales of mortgage-backed securities in the United States. The program, which was initially intended to keep interest rates down following the housing crash, produced a profit of twenty-five billion dollars for United States taxpayers.

 

The program is the latest success of many with respect to the current administration’s emergency government programs. The mortgage bailout program made it possible for both current and future homeowners to save with lower interest rates, while also producing a very strong profit for taxpayers.

 

While the news regarding the program’s success is quite positive, there are other housing market elements for which taxpayers continue to criticize the government. One of those elements is the total cost of Fannie Mae and Freddie Mac. The bailout of the two companies will likely cost more than one hundred billion dollars. In addition, many homeowners that have been promised aid still have not received much, if anything, from the proposed funding by the United States government.

 

There is hope, though, that the government will start to address the matters addressed by much of the criticism. The profitable sale of mortgage-backed securities may be the first piece of the bigger picture in which the government truly looks out for the struggling homeowners.

 

It is not yet clear as to what the United States government will do with the twenty-five billion dollars in profit. Some economists believe that the money will be put back into the real estate market, whereas others feel that it may be used to address other pressing programs.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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