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%%NAME%%, welcome to my Newsletter
I take pride in providing useful information that you will find helpful when making decisions regarding your mortgage. My monthly newsletter covers different topics each month to help increase your knowledge of the mortgage industry and recent industry happenings. Please take a moment to review the monthly newsletter and click on the links on the left hand side for more news and resources. Feel free to pass this newsletter along to any friends and family members who might find it useful and contact me with any questions you may have.
Thank You,
George Tuma
Spotlight
Fannie Mae and Freddie Mac Rescue and What
It Means for You
Over the recent weeks the government has placed both Fannie Mae and Freddie Mac
into a conservatorship, taken on full agency responsibility and started
addressing the debt and internal management and accounting delinquencies of both
companies. The government's backing served as an economic life jacket benefiting
not only Fannie Mae and Freddie Mac, but the nation as a whole.
According to the United States Secretary of Treasury Henry Paulson, the three
objectives of the government take-over include, market stability, mortgage
availability and taxpayer protection. Although the objectives are clear, many
consumers are unsure what to expect over the next few months as the Fannie Mae
and Freddie Mac conservatorship and financial bailout plan unfold. Below is a
brief overview of the impact of the Fannie and Freddie take-over and what it
means for you, the consumer.
Fannie and Freddie
Federal National Mortgage Association, better known as Fannie Mae, and the
Federal Home Mortgage Corporation, known as Freddie Mac, have been privately
owned and operated since 1968 as government sponsored enterprises (GSEs). Both
Fannie Mae and Freddie Mac have purchased mortgages from banks, savings and
loans and other lenders to generate cash for the mortgage brokers and encourage
more home loans. With the implicit support of the Federal Government, Fannie Mae
and Freddie Mac have financed most of the home loans being made in America. Now
that this government support is widely known and in effect, consumer faith in
both agencies has sustained.
Borrower security is of the utmost importance during this time of financial
uncertainty. In order to uphold the mortgage and housing industry and provide
affordable home loans to consumers, James B. Lockhart, director of the Federal
Housing Finance Agency (FHFA), has taken control of Fannie and Freddie which, in
turn, will facilitate the following:
- Lower mortgage rates
Mortgage rates are expected to fall as the United States Treasury purchases
mortgage-backed securities (MBS) and bad assets from both Fannie Mae and
Freddie Mac. Now that the Treasury will buy the mortgage backed securities,
their prices should rise, as demand increases, and MBS yields drop. As
yields drop, so do mortgage rates, thus making home ownership attainable and
affordable.
Both Fannie Mae and Freddie Mac announced the cancellation of their planned
0.25 percent charge increase to bank's adverse market delivery fees in hopes
that lenders would pass along savings to borrowers who have not yet closed
on their mortgage loan. Call Loanstar Financial Corp. at 760-519-6595
to learn more about our mortgage programs and competitive interest rates.
- Potential modification of delinquent
mortgage programs
In order to encourage more affordable lending programs for those borrowers
who are delinquent in their mortgage payments, Fannie Mae and Freddie Mac
have initiated additional financial incentives for lenders that modify their
troubled client's loan programs.
A Loanstar Financial Corp. mortgage specialist will help you assess your current
financial situation to determine if you qualify for a new, low fixed rate loan.
Call 760-519-6595 today to schedule a meeting.
- New mortgage rules
With the presidential elections just around the corner, government officials
are holding off on determining any new lender requirements, yet many are
speculating that borrower credit score requirements, loan-size-to-home-value
ratios and down payment requirements could come up for review.
As the nation draws closer to selecting the next president, consumers throughout the nation prepare for economic change, yet the economy's financial situation is not something that can be fixed over night. Working with a reliable mortgage specialist and practicing responsible borrowing is the key to staying on the upside of the economic downturn.
Keeping You Informed
Loanstar Financial Corp. is dedicated to keeping you informed of
the latest market trends and mortgage options. Visit us online at
http://lsfcorp.com, or call 760-519-6595 today to obtain custom loan
options designed to fit your needs and help you obtain your ownership goals.
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