An AP story by Alan Zibel just announced the likelyhood that troubled mortgage giants may be taken over by the US Government in a bold move to shore up the two companies. Details were not available at press time, but Freddie CEO Richard Syron and Fannie CEO Daniel Mudd are expected to be casualties of the takeover.
According to the article, Fed Charmain Bernanke, Treasury Secretary Paulson and chief regulator James Lockhart told top executives about the government's plan to take over in a manner called a conservatorship in a meeting this afternoon.
Read his story, posted this evening: Government May Soon Back Fannie, Freddie
Related Story In The Wall Street Journal: U.S. Near Deal on Fannie, Freddie
Specializing in Buyer & Seller Representation in the Tucson, Arizona real estate market.
All original material written by Kent Simpson unless attributed to source.©2011, 2010, 2009,2008,2007
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Hi Kent;
Great information, this market needs all the help that is available.
Anthony
Man, Anthony - you're fast! I hadn't even finished editing this post yet! Thanks for the comment.
Thanks for the post and thanks for the links. Lets hope this boosts the market a bit for us all.
I will be nice to see a resolve to some of the issues the US market is facing. In Canada we have no where near the issues but bear some of the weight due to proximity and our economic relationship with the US.
That and I only wish the best results for all the Realtors who are weathering the storm...
Joseph, I hope you got some good info out of the articles - thanks for stopping by and commenting.
Kye - as neighbors, we effect each other without most people realizing it. The storm isn't so bad, just have to figure out what gear to wear!
Thanks for the info Kent and for the links. Ive been expecting a take over for awhile now it will be interesting to see how this effects things in the market. Thanks again. www.vizionkc.com
You're welcome, Justin - it is going to be interesting to watch how this all unfolds over the next few months, isn't it?
Kent- I knew you'd be on top of this news. I guess we now get to see how effective the government is at this. If handling the Fed weren't enough now we're going to see the government have an extremely large influence over half the backed mortgages. I wonder how long they'll be doing this. It makes me wonder to what degree "free market" forces will be allowed.
It is going to be interesting...but I shudder at the thought of "We're from the Government...and we're here to help." Thanks for dropping by, Chuck.
Other than guessing that rates might go up and we could have more paperwork, what does everyone speculate will change?