Fannie Mae and Freddie Mac “Crisis” … What Does it Mean?
Follow-up article to: “Government Steps in to Rescue Fannie, Freddie.”
Many have been hearing about the recent turmoil with Fannie Mae and Freddie Mac, the private equity firms responsible for funding about half the nation’s mortgages. Home owners, as well as loan-seekers want to know: “What does it mean for me?”
The following article explains well the situation, as well as the proposed solutions for these Idaho mortgage funding institutions. In short, they have enough money, it’s simply a matter of investor confidence that they will always continue to have enough money. The proposed government solutions help reassure investors that they will. “There has been no liquidity crisis for Fannie or Freddie … It’s simply been a crisis of confidence in the equity.”
The details of the problems and solutions will continue to unfold. Some experts think lending requirements could continue to tighten, until full market confidence returns. More than ever, we believe loan seekers should work with a local lender who will take the time to listen, and take advantage of borrower attributes that might be skimmed over by large lending firms.
- -
Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Leave a Reply
You must be logged in to post a comment.