Fannie Mae & Freddie Mac Update

The recent announcement by the U.S. Treasury Department that places Fannie Mae and Freddie Mac under conservatorship marks a significant turning point in the mortgage credit crisis and housing market recovery.

Fannie Mae and Freddie Mac, which are involved in more than half of all real estate financing in the U.S., have suffered irreparable damage from the fall out over subprime loans and high default rates on mortgages. The U.S. Government recognizes that Fannie Mae and Freddie Mac are crucial to making fair and affordable mortgage loans available to consumers and that their mission must not be interrupted.

By placing Fannie Mae and Freddie Mac under conservatorship, the government will take control by infusing much needed capital into the mortgage market. Following the Treasury’s actions, the market immediately responded positively with improved interest rates which are expected to stimulate home sales.

One of the biggest problems facing the housing market in recent times has been the availability of financing. The Treasury Department’s move makes financing more certain and adds significantly to the advantageous opportunities that currently exist for homebuyers.

If you would like more information on this subject, please contact me and I will put you in touch with a trusted loan specialist who will answer all of your questions.