Where Have Fannie and Freddie Been?by Tim Manni
It seems like ages ago when the housing rescue bill was passed in July, and Fannie and Freddie were to play a key role in modifying and restructuring how consumers got and paid their home loans. As the two mortgage giants continued to struggle in the coming months, the government, deciding they were too big to fail, placed the agencies into a conservatorship, essentially taking them over.
But where are they now? It seems like we haven’t heard from them in a while. The current crisis on Wall Street has overshadowed the two “reinvigorated” mortgage companies and all the good that was to come from the stipulations in the housing rescue bill, otherwise known as the HOPE for Homeowners Act of 2008.
Diana Olick of CNBC quoted Bruce Marks of the Boston-based Neighborhood Assistance Corporation of America in her blog Realty Check:
What Fannie and Freddie are saying to us is that they’re not willing to reduce the interest rate permanently below the market rate to make it affordable. They’re not willing to stop the foreclosures, and they’re not willing to reduce the principal on any mortgage out there, so they are the most resistant out there than any investor in the country.
(Fannie Mae Spokesperson) We are undertaking a variety of efforts to help prevent foreclosure and keep people in their homes…
Read the rest of Fannie’s rebuttal on Olick’s blog.