Tag Archives: fannie mae
Freddie Mac and Fannie Mae have played a crucial role in helping tens of millions of Americans become homeowners over the past several decades. The two Government Sponsored Entities (GSEs) have provided access to low-cost home loans and have been a core part of the government’s efforts to make affordable housing available to all Americans.
While Fannie Mae and Freddie Mac are two separate companies, they both act as guarantors of mortgages and purchasers of “conforming” mortgages which eventually are sold to investors. Before they failed in 2008, they were both considered to be extremely safe companies which allowed them to borrow money at extremely low rates. However, once the
Although the housing market has gone through tremendous changes, the great news is that consumers haven’t given up. Despite budget sequestration, and pessimism about the overall economy, consumers are bullish about the housing market. In its latest release, Fannie Mae reports that consumer confidence remains firm, even in the midst of economic changes. In fact,
The Crisis Because of extensive damage to the lending industry, the backdrop to the modern mortgage deal has shifted. Prior to the crisis, lenders were cautiously liberal. Possibly, the prevailing philosophy was that a healthy batch of indebted consumers was necessary for a healthy economy. In those days, housing and finance laws reflected a hands-off