Fannie and Freddie takeover: not all homeowners benefit

Sep 14, 2008 | Comments 3

Half of the nations’ home mortgages are now owned or guaranteed by the federal government after the Fannie Mae and Freddie Mac take over, and now we will all be after a mortgage break courtesy of the taxpayer, well, if it’s good enough for Uncle Sam.

But could this be were all the problems will start, how will the government decide who they will and who they won’t help with their mortgages, this could see us going down the slippery slope. Four days after the take-over of Freddie and Fannie, four Senate Democrats asked the companies’ new overseers to halt foreclosure proceedings on loans in their portfolios 90 days or more.

It was reported by New York Sen. Chuck Schumer’s office, that giving this extra time will give the two companies time to modify the troubled loans, similar to what the Federal Deposit Insurance Corp. is doing with loans that are in trouble owned by IndyMac Bank.

This could work out very well for homeowners who have fallen into trouble with their mortgage payments, but doesn’t seem to do anything for the people who have struggled to keep up their monthly payments. Is this really fair? Please share your thoughts on this subject with us.

Read full article sfgate

Filed Under: Business News • Mortgage News

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  • http://WWW.FLIPPINGFRENZY.COM Ralph R Roberts

    Should the taxpayer rescue Fannie and Freddie ???? NO NO NO

  • http://www.100mortages.org E F

    I think all mortgages obtained within between 2005 to the end of 2007 should be subject to refinancing. I am one of those property owners who bought a house in December 2006. Less than a month later, my property was devalued by 5%. I suspect there were not only predatory lending practices occuring, I think the general public has to insist on holding banks and property appraisers accountable for their actions.

  • http://www.100mortages.org E F

    I think all mortgages obtained within between 2005 to the end of 2007 should be subject to refinancing. I am one of those property owners who bought a house in December 2006. Less than a month later, my property was devalued by 5%. I suspect there were not only predatory lending practices occuring, I think the general public has to insist on holding banks and property appraisers accountable for their actions. Either a property is worth what the appraiser claims, because on sound fundamentals or it is not. Appraisals should not be based on mass histeria or hype.