About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

Interest Rate Differentials Between Jumbo and Conforming Mortgages, 1995-2000 [i] (May 2001)

handle is hein.congrec/cbo06833 and id is 1 raw text is: INTEREST RATE DIFFERENTIALS BETWEEN JUMBO AND CONFORMING MORTGAGES, 1995-2000 May 2001 This Congressional Budget Office (CBO) paper estimates the difference between interest rates on two types of mortgage loans: conforming loans, which are for amounts of $275,000 or less, most of which are ultimately purchased by one of the three government-sponsored enterprises (GSEs) that deal with housing finance (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks); and jumbo loans, which are larger than $275,000 and may not be purchased by the GSEs. The degree to which interest rates on conforming loans are lower than rates on jumbo loans serves as a rough measure of the benefits that the housing GSEs pass on to borrowers in the mortgage market. This paper explains in more detail some of the estimates contained in CBO's new study Federal Subsidies and theHousingGSEs, prepared at the request of the Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises of the House Committee on Financial Services. David Torregrosa of CBO's Microeconomic and Financial Studies Division wrote this paper under the supervision of Marvin Phaup and Roger Hitchner. Coleman Bazelon, Chuck Capone, Debbie Lucas, and Angelo Mascaro of CBO reviewed the analysis at many stages, as did Wayne Passmore of the Federal Reserve Board, Ron Feldman of the Federal Reserve Bank of Minneapolis, and Robert Seiler Jr. of the Office of Federal Housing Enterprise Oversight (OFHEO). Their assistance is greatly appreciated. Barry Anderson, Perry Beider, Arlene Holen, Susanne Mehlman, Preston Miller, David Moore, Nathan Musick, and Tom Woodward of CBO provided helpful comments, as did Patrick Lawler and Tom Lutton of OFHEO and Mario Ugoletti of the Treasury Department. Tim Forsberg and Joe McKenzie of the Federal Housing Finance Board provided the data used in this analysis and patiently responded to numerous questions. Eric Warasta and John McMurray of CBO and DaRon Ross and Sean Corcoran, formerly of CBO, provided research assistance at various stages of the analysis. Chris Spoor edited the paper, and John Skeen proofread it. Rae Roy prepared the paper for publication, and Lenny Skutnik provided the printed copies. Annette Kalicki prepared the electronic versions for CBO's Web site. Dan L. Crippen Director May 2001 CONTENTS

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most