Persistent and reasonably well substantiated rumors suggest that the Federal Governmnet will fully take control of Fannie Mae and Freddie Mac, the two “Government-Sponsored Entities” that dominate the U.S. mortgage business.
This is a huge and historic development, profoundly negative though it is.
The ramifications of such a move are not yet known, though it seems quite likely that foreclosed Fannie/Freddie properties will likely be outsourced to a “third party liquidator” such as was done during the Savings & Loan Debacle of the 1980′s with its third party liquidator, the Resolution Trust Company.
Stay tuned for more updates and analysis from FreeRealEstateTraining.com – and your comments and questions are welcomed.
Here we go, again. Why don’t the people who have power to make these decisions just put aside their political agendas for enough time for the system to find its own balance and come to its own position of stability? I understand that the housing market is currently in a state of disarray and folks who, in many cases, had no place getting involved with a mortgage are now in a pinch because of the greedy and short sighted mortgage brokers and realtors (no blanket statements – I only mean to address the bad apples, not dump the cart over) who cared more about their next commission check than the long term injustice done to overly eager would-be homeowners that they were passing a financial death sentence upon. Such fiduciary irresponsibility will have its effect on the entire system. If no one thought to try to fix the system when speculator activity caused the unnatural appreciation in prices that lead the short sighted or ignorant people to believe that prices would continue to rise long term, why would they jump to fix this now? It’s all parts of the same predictable cycle of auto-correction. Don’t you agree? All who fail to learn the lessons that history had to teach them are fated to repeat them.
I agree with Bryan 100% How come when 1 person cant pay their mortgage they are called dead beats but when 1 company cant pay a million mortgages they receive help form the government? It is completely and utterly rediculous and should have never been allowed to happen. It is absolutely illegal the procedures that are taking place to help Fannie Mae and Freddie Mac and it is all going to result in more government owned property and less private proprty being owned by American citizens. I smell a s**t storm brewing.