Industry NewsMortgage

50-year real estate loans a possibility

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Just as folks are getting used to the idea of 40-year mortgages, securities issuers are upping the ante, talking about possible amortization schedules of 50 years, according to industry professionals. "It's a good idea for consumers," said John Marcell, president of the California Association of Mortgage Brokers. "There's nothing wrong with a 50- or 60-year mortgage." So far, 50-year loans are only a gleam in a couple of securities issuers' eyes, according to Mark Douglass, a senior director at the Fitch ratings agency. It's not possible to get such a loan at present. In May, Fannie Mae confirmed that the mortgage giant plans to expand its purchase of 40-year mortgages, making such mortgages available to additional lenders. To make 50-year mortgage loans a possibility, Fannie Mae would have to embrace them – and the government-sponsored enterprise has given no indication as to whether it will or not. But the idea is currently a hot topic in the industry, and 40-year loans are b...