Will Freddie Mac and Fannie Mae bailout also help prime mortgage customers? on 100 Mortgages

As Freddie Mac and Fannie Mae were bailed out this week by the US Federal Government, which is of course basically the US taxpayer, we have decided to bring to your attention some stats that came out last week by the Mortgage Bankers Association, it showed that 9 percent of mortgage holders are behind on their mortgages, with 6.2 percent already in foreclosure, with 2.8 percent of those in the second quarter of this year, it’s not rocket science to see why Freddie and Fannie are in trouble with nearly 10 percent of mortgage payments not being paid to them, stopping the liquidity of the two mortgage finance companies.

We are constantly hearing subprime mortgages as being the main reason for the housing market decline, but it’s not just the riskier homeowners who are in trouble, the prime mortgage holders are also in need of help. In Michigan 6-1 mortgage loans are prime loans and reports show 4 percent of fixed-rate prime mortgages were past due by at least one payment in the second quarter of the year.

So, although a vast number of people think that the only customers in trouble with their mortgage payments are customers who borrowed more than they could afford, it’s simply not true, prime borrowers are also feeling the pinch, but the bailout of Fannie and Freddie has nothing to offer the prime mortgage customers in trouble, and if the housing market does not improve soon, more and more customers will have to walk away from their mortgages, and it will be likely that the Federal Government (the tax payer) will have to pump even more money into Freddie and Fannie. What you’re your thoughts on the Freddie and Fannie bailout?

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