Wind-Down Of Fannie Mae, Freddie Mac Hurts Borrowers: Bove

In his most recent April 23 report, well-known banking expert and Rafferty Capital Markets LLC VP of equity research Richard X. Bove made the point that U.S. housing sales were on the decline primarily due to government-engineered actions that are driving up home-ownership costs for the American consumer. A combination of factors such as rising loan processing costs due to regulatory changes, as well as banks’ drive to make mortgage servicing more profitable, are responsible, but the main cause, according to Bove, is the reduced availability of that sine qua non of the U.S. housing market – the 30-year mortgage…