Fannie Mae and Freddie Mac, backed by the Govt?
Written By: admin on June 29, 2009
One Comment
“WASHINGTON – The government is expected to take over Fannie Mae and Freddie Mac as soon as this weekend in a monumental go designed to protect the mortgage market from the failure of the two companies, which together hold or guarantee half of the nation’s mortgage debt, a person briefed on the matter said Friday night. ” AP
If a person has a mortgage backed by Fannie or Freddie, does this affect them? Would it affect a homeowners ability to refinance through the FHA streamline refinance program?
Thanks!
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Tags: failure, fannie mae, fannie mae and freddie mac, FHA Streamline Refinance, fha streamline refinance program, freddie mac, friday night, mortgage debt, mortgage marketTags: failure, fannie mae, fannie mae and freddie mac, fha streamline refinance program, freddie mac, friday night, mortgage debt, mortgage market
If a person has a mortgage backed by Fannie or Freddie, nothing will change. The documents are already in place. The loans are already in place.
Regarding an ability to refinance, that depends on whether the government’s action will directly or indirectly affect that specific program. Honestly, I don’t know. My best guess would be: Not immediately. Longer-term, though, it could.
Really, all this is unexplored territory for everyone–lenders, real estate agents, even the government.
Hope that helps.