Does the Fannie and Freddie bailout now mean that every loan they have or make is guaranteed by the U.S. Treasury? Does the bailout eliminate investor risk in mortgages? Dan Green thinks so. You can read about it here: http://www.themortgagereports.com/.
Being a glass is half full kind of guy, I like this take on the situation. Mortgage rates are driven by a number of complicated factors in the long term, but over a short period can be driven by the simplest investor expectations. Selfishly, I also like the idea that maybe I might get a few more title orders to help pay my share of the taxpayer bailout.
I hope that he is correct, don't you?
John: I have mixed emotions. Since most of my business is targeted against investors, the bailout seems like a good thing. Then the other side of me says "Yea but, the government just took over 75% of the secondary mortgage markets in the country!" That has me scared as to longer term implications!
Steve, I agree with you. The worrisome part of all of this is what will happen now that the politicians are in control. I'm fairly certain that they'll carefully consider the situation and all its ramifications then make a well reasoned, thoughtful and effective response that will benefit every stakeholder going forward.......... NOT!
Thanks for the comment.
John