Government Takeover of Fannie Mae and Freddie Mac
What does it mean for the local housing market?

1)What happened? On 9-8-08, the US Govt took over ownership and management oversight of mortgage giants Fannie Mae and Freddie Mac.
2) Why did the US Govt take over Freddie and Fannie? They did so to stabilize the overall housing market and help bring down interest rates.
3)What is the current primary mission of the mortgage giants? "To proactively work to increase the availability of mortgage finance" which is a quote from James Lockhart who will temporarily govern Fannie and Freddie. He also stated that they would be looking at ways to keep mortgages affordable for the American Public.
4) What will happen to interest rates? It is widely expected to help improve mortgages rates in the near future although there is no guarantee this will happen.
5) Is this a good thing for the local housing market? Yes, it is looked at favorably by the majority of parties involved in the local housing market including Real Estate and Mortgage Banking Professionals.
6) Does this fix all the economic issues and problems in the local housing market? No, it doesn’t fix all the current issues including foreclosures and concern over home values but it does send a strong message to consumers that the mortgage market will continue to operate as it has in the past to help the consumer achieve the American Dream of Home ownership. In fact, Wall Street responded favorably to this news on Monday morning.
7) Is it a good time for a consumer to buy a home? Yes, with interest rates trending lower and home prices down from previous years it is an excellent time for someone to consider buying a home.
8) Where should a homeowner go for additional information regarding mortgage options? They should seek out an experienced mortgage banking professional who works for a company with a good reputation in the mortgage industry.

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