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The Obama administration's long-term aim is to reduce the amount of mortgages that the government guarantees.
Then there's what to do with the Federal Housing Administration, another government entity that has backstopped a huge amount of mortgages since the financial crisis.
Firstly, the amount of mortgages that lenders can hand out on loan-to-income ratios of above 4.5 will be limited to 15% of the total.
"Credit conditions remain extremely tight and this continues to exert upward pressure on many mortgage rates and limit the amount of mortgages available," he said.
If banks remain nervous about increasing the amount of mortgages they originate, it only tightens the grip of the few dominant lenders, making it easier for them to determine the interest rates that ordinary borrowers pay and generate strong profits.
The FHASecure bailouts announced by President Bush in August, to help borrowers whose adjustable-rate mortgages are resetting at prohibitively high rates, will likely amount to only roughly 2percentt of the amount of mortgages guaranteed by Fannie Mae.
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(Currently, the amount of mortgage debt eligible for the interest rate deduction is capped at $1 million).
The amount of mortgage debt they are carrying is not insignificant.
As of 2010, the average amount of mortgage debt carried by new retirees was $70,000, according to Alicia H. Munnell, the director of the Center for Retirement Research at Boston College.
Wilson did not disclose the price he is expecting to obtain for the properties, or the amount of mortgage debt attached to them.
The panel also recommended reducing the amount of mortgage debt that could receive the full benefit of the credit, to well below $1 million (with regional variation).
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