The rumors have been out there for weeks now. Today they became truth! On Sunday morning the new GSE regulatory agency placed Congressionally chartered mortgage giants Fannie Mae and Freddie Mac into separate conservatorships, with the government committing $100 billion to each, while removing their CEOs, and laying the groundwork for a radical and historic restructuring of the entire U.S. mortgage market.
Look out it will be a rocky road for the next few months. If you have loans approved, get them closed. The market will change. Loans will change and the value of homes might change due to the fact that the money supply will be tightened.
The good news is, if you are a mortgage loan officer or Realtor and you survive the next few months, you should be successful. Just hang on and continue to be the best you can be. Seems like AR might be a good place to find support and market strength.
More details to follow.
Paul Todd
Realtor and Mortgage Banker
Comments(4)