Home Loans & Mortgages

The Commonwealth Bank of Australia [CBA] has just dropped the home loan rate on its recently introduced ”no fee” home loan offer to 7.11% in response to other major players offering deep discounts in order to attract home buyers and mortgage refinance customers in a slow mortgage market.

It has been reported that the Obama administration has proposed a hose -down of the US mortgage market that would limit the Government’s role in supporting home ownership through implied Government Guarantees and mortgage facilitation through Fannie Mae and Freddie Mac.

The solution that we know we all need is a separate, non-bank mortgage back security enterprise, that is Government sponsored and Guaranteed.
This will level the playing field, so nonbank players can get funds cheaper as cheap or cheaper than the banks. And be able to have lower margins than the banks.
This will create new non bank mortgage players at the local level. Mortgage brokers that can become micro mortgage managers.