The American dream is at stake if low-income earners can't own a home


Even as multiple people rightfully express concerns over the federal tax bill, we should not lose sight of one of the major pillars of homeownership; Fannie Mae and Freddie Mac. The government-sponsored enterprises (GSEs) exist to make the promise of homeownership attainable for individuals of low- and moderate means.

For many people, the dream of homeownership is only attainable through federal guarantees, or loans insured by the federal government. The federal backing provided by the GSEs ensures banks will be paid if the borrower defaults on their loan. This guarantee is critical for the borrower and the lender, as it protects them both.

Without this critical guarantee, many banks would be unwilling to finance home loans, making the promise of the American dream elusive for hardworking families.

As successful as this program has been, it is now in trouble. However, to understand the present, one must consider the past.


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Tami L Barber

NMLS #1030737

(423) 943-9269

Encore Lending Group LLC

NMLS #1249911

206 Wesley St, Johnson City TN 37601

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The information contained in this site has been prepared by an independent third party and is distributed for educational purposes only. This is designed to give helpful tips on the mortgage process and is not intended to give legal advice. Information is considered reliable but not guaranteed. This is not a prequalification, preapproval, loan approval or commitment to lend.