Sen. Rand Paul Wants to Kill What?

Okay, so Sen. Rand Paul, the Tea Party darling from Kentucky, wants to kill the Department of Housing and Urban Development, which contains the very popular FHA program. (See the National Mortgage News website for details.) And yes, he's dreaming., but as the late great Stan Strachan once said: "Never let the facts get in the way of a good story." The bill he introduced to cut $500 billion from the federal budget (which includes the 'Let's kill HUD' section) is going nowhere. But for mortgage bankers and brokers who consider themselves fiscal conservatives, Sen. Paul's ideas concerning federal subsidies and housing present a clear problem. Let's face it, without federal support, both the housing and mortgage markets would collapse. And I do mean collapse. If you think the 30% drop in home values (from the peak) is gut wrenching, just think what pulling the plug on FHA would do. And I'm sure he'd like to drive a stake through the hearts of Fannie Mae and Freddie Mac too. Think about it for a second: what would the mortgage market look like without all three? Have any serious (the operative word here being 'serious') thoughts about this? Drop me a line at: Paul.Muolo@SourceMedia.com.