Fannie Mae and Freddie Mac shares fall more than 15% on 100 Mortgages

Fannie Mae and Freddie Mac have seen a 15% fall in their shares and it looks as though IndyMac are also in trouble. The drop in shares is a sign that confidence in these two government-sponsored mortgage companies is at an all time low.

Shares on Monday for Fannie and Freddie hit a 14 year low, at one point, Freddie Mac shares had dropped by a massive 30%.

IndyMac are also feeling the squeeze as home buyers are now having a harder time getting a mortgage, IndyMac are now saying that they will be stopping most types of homes loans.

IndyMac used to specialize in loans for borrowers who did not document their income or assets fully, however with mortgages tougher to get, these kinds of mortgages are a thing of the past.

IndyMac’s decision to drop this kind of mortgage will have a huge effect on the company; as a result they will have to cut 3,800 of its 7,200 workforce.

Source

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