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Are 15 and 30 year fixed-rate mortgages in danger of becoming extinct? President Obama says there’s still a role for the government to play in the mortgage market, but he wants to “wind down” Fannie Mae and Freddie Mac, the firms that purchase mortgages from banks. Unlike most nations, the U.S. system allows for fixed-rate home loans. Nearly 9 out 10 mortgages are guaranteed by the government. The president says that taxpayers should never again be left “holding the bag” because of bad bets by banks and other financial firms. But he did not give many details of proposed reforms.
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