No more 30 year mortgage?

[Ali Samana]

http://finance.yahoo.com/news/Fixing-Housing-Crisis-Time-To-cnbc-1256002211.html?x=0&sec=topStories&pos=8&asset=&ccode=

An interesting article. Would it help or hurt the investment world if the government completely walked away from the housing industry?

[Kevin C.]

Changes alluded to in the article (shorter terms, higher rates, pre-payment penalties, kill interest deduction) would make housing less affordable.

Banks would win with higher fees, government would win with increased tax revenue - the average Joe would lose.

Talk about reducing the potential buyers pool, but on the flip side, cash buyers and those that could afford shorter terms would make out like bandits.

I could see a huge increase in the need for rental homes if any of that played out - could be advantageous for certain investors.