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Bulk quantities of food, electronics, furniture, you name it and Costco isthe place to buy it. Now, after a year of testing to see the viability, the Costco we know and love will be implementing a full-service mortgage lending program on its website in partnership with 11 well know lenders. Over 10,000 mortgages have been issued under the program already. They are hoping that number will swell as word gets out.
What is your reaction to Costco’s bold move? Comment and Share
Mortgage Principal Write-Downs
20 Democrats of the House of Representatives are urging for Fannie Mae and Freddie Mac to reduce the mortgage principal of borrowers who owe more than their home is worth. The
Representatives argue that this action would reduce the risk of defaults for 20% of Freddie and Fannie mortgages.
On the other side of the debate, the regulators of Fannie and Freddie, the Federal Housing Finance Agency, refuse to act due to concerns that writing down principal balances will create a ‘moral hazard by prompting other borrowers to cease in making loam payments on time.
We will be eagerly watching to see where this discussion ends.
Source: “U.S. House Democrats Press for Mortgage Write-Downs,” Reuters News (Nov. 22, 2011)