US Government’s seizure of Fannie Mae and Freddie Mac

Sunday it was announced that the government, through the Federal Housing Finance Agency, was making the landmark, although not altogether unanticipated, decision to take over the Federal National Mortgage Association (FNMA-Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).  After suffering from the biggest number of mortgage defaults in 30 years, the two giants are in serious danger of failing and delivering a major blow on the already stressed housing market .  In a nutshell, they’re worried the mortgage market will fall apart.  The end goal is to restore confidence, mainly abroad and at home, for those financial institutions that hold these companies’ securities.  Read more….

This entry was posted on 8. September 2008 at 09:53 and is filed under Government Issues!, Housing Information/Stats, Blogroll. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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