Bad Credit Blues

Possible Benefits of the Fannie Mae / Freddie Mac Takeover

I posted an article: Who Does The Mortgage Giant Bailout Help?

Since then, I’ve had some time to look at the issue a bit more, and here are some possible benefits to home buyers who want a mortgage:

• Fannie and Freddie will now be primarily focused on proactively working to increase the availability of mortgage financing
• Re-evaluation of Fannie and Freddie fees with an eye towards affordability
• Possible reduction of mortgage rates for fixed-rate non-jumbo mortgages
• Increased availability of financing for consumers with good credit.

So if you are a potential borrower with good credit, or even a current borrower with good credit, you may see lower rates. And of course, if you own a stock or bond in Freddie Mac or Fannie Mae, or if you work for one of the mortgage companies, you should be relieved.

However, I do not see how this move will hurt the homeowners in crisis now. i.e. people with challenged credit who cannot afford their mortgages may not benefit much. And of course, taxpayers are bound to feel this in their wallets.

Related: Layoff Mortgage Protection

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