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Why do we need the mortgage industry, which charges a premium over the prime interest rate? Why can’t the Fed lend directly to borrowers? Why do we need interme
by avidphantasm 4y ago
Why do we need the mortgage industry, which charges a premium over the prime interest rate? Why can’t the Fed lend directly to borrowers? Why do we need intermediaries in the provision of mortgages?
- ameister14 4y agoBecause the Fed is not equipped to evaluate risk on that scale.
- deleted 4y ago[deleted]
- dragonwriter 4y agoMortgages have higher risk and servicing costs than the lending done at prime, so they are going to be done at a premium to it no matter who does it (unless it is yet another government subsidy to homebuyers at the expense of renters.)