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Government Mortgage Interest Rates: A Serious Discussion about the Intertwined Topics of Risk Adjustment and Cross-subsidies

The Stoop (NYU Furman Center)

The core claim made by critics is that the changes, implemented on May 1, are a mechanism for a new and major economic cross-subsidy from less risky borrowers to more risky ones. In short, this was a classic media-political firestorm about a relatively technical topic that is normally of interest only to those inside the mortgage system.