Mortgage and Real Estate Blog

Apparently, the US government has made the decision that Freddie Mac and Fannie Mae have spun too far out of control and can no longer be left to their own devices:

(source)Federal officials on Sunday unveiled an extraordinary takeover of Fannie Mae and Freddie Mac, putting the government in charge of the twin mortgage giants and the $5 trillion in home loans they back.

The move, which extends as much as $200 billion in Treasury support to the two companies, marks Washington’s most dramatic attempt yet to shore up the nation’s housing market, which is suffering from record foreclosures and falling prices.

Is it really going to make much of a difference that the government is making the effort to let the Federal Housing Finance Agency take control? Will it change anything? Will the economy grow and will fewer people find themselves in a position in which they are able to move into a newly created job or to simply take control over making mortgage payments?

The goal, obviously, is to provide relief to the housing market and to the financial sector, however, it’s difficult to predict whether or not this takeover will actually do anything at all to help the economy - or the ability to keep people in their homes.

This entry was posted on Sunday, September 7th, 2008 at 6:58 pm and is filed under Real Estate Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.