Government Mortgage Interest Rates: A Serious Discussion about the Intertwined Topics of Risk Adjustment and Cross-subsidies
The Stoop (NYU Furman Center)
MAY 31, 2023
These loans, without special treatment to increase their G-fees, would benefit from the low funding cost enjoyed by the GSEs due to their receiving government support to back their guarantees. However, it is very hard to argue from a public policy viewpoint that taxpayers should indeed be implicitly subsidizing those types of loans.
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