Fannie Mae's reported $2.2billion loss!!!!!

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Real Estate Agent with William RAVEIS Realty

I read an article on Yahoo this morning regarding the $2.2 billion dollar loss that Fannie Mae recorded due to people defaulting on their loans. The part of the article that really stuck out to me was that Fannie Mae is anticipating further decline of the real estate market and they are projecting an increase in loan defaults.

What does this mean for the industry we make our living in? Should we expect housing prices to decrease or will it be harder to have a buyer qualified?  I think the days of putting less than 20% down are going to be a thing of the past. What are your opinions?

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Rainmaker
629,364
Associate Broker Falmouth MA Cape Cod Heath Coker
http://www.CapeGroup.com & http://www.REindex.com - Falmouth, MA
Heath Coker Robert Paul Properties Falmouth MA
I have tried to negotiate with FannieMae directly.  Their "policies" are what keeps them in the red.  They have little ability to be flexible and even refuse to give their servicers flexibility to keep loans solvent by work out.  They don't have a memory (or anyone left who has a memory) of the 80s and how to work things out.
May 06, 2008 01:12 AM #1
Rainer
434,914
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

I believe Fannie and Freddie have reserved two trillion.

They are expecting more carnage in 08.

Hopefully, 09 will be a better yr...

May 06, 2008 01:20 AM #2
Ambassador
1,495,561
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
I read the story and watched a discussion on Bloomberg...it will be much harder to qualify, and housing prices will continue to fall for sometime to come.  No one is calling a bottom.
May 06, 2008 01:23 AM #3
Rainmaker
164,648
Rhonda Burgess
Southern Living Realty Partners - Smyrna, TN
Moving to Nashville TN Real Estate Specialist
It's definitely going to be rough for a while longer.  Good credit and money down will be the norm from here on out to get a mortgage.
May 06, 2008 02:47 AM #4
Rainer
47,171
Diane & Bob Arenholz
William RAVEIS Realty - Yorktown Heights, NY
Covering all of Westchester County, NY
Thank you all for your comments.  Interesting information regarding negotiating with Fannie Mae and I think it is interesting that no one is calling a bottom for the market decline. 
May 06, 2008 02:09 PM #5
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Rainer
47,171

Diane & Bob Arenholz

Covering all of Westchester County, NY
So How's the Real Estate Market?
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