What a day! I didn't even get a chance to post pricing on my blog today. Here it is in a nutshell: Fannie Mae and Freddie Mac, the two combined are THE largest mortgage lenders in the USA. Together they own 5 trillion dollars in mortgages. More than likely they own your mortgage debt. Earlier this week the New York Times put out an article basically saying that Fannie & Freddie were insolvent and in need of government intervention. To make matters worse, the NY Times article quoted a previous Federal Reserve official who said that Fannie & Freddie should go into conservatorship. Conservatorship would wipeout all preferred and common stock in both companies. So, you can guess what happened to their stock value today. Down, down, down. Of course the news media saw blood and jumped on this story saying credit will be even tighter, and foreclosures will increase. To top off all of this fun .... just a few minutes ago federal regulators seized the assets of IndyMac, one of the larger mortgage lenders in the US.
Let's all take a deep breath and get a grip. Fannie Mae & Freddie Mac may be insolvent according to standard accounting procedures ... but for goodness sake SO IS THE U.S. GOVERNMENT!!! The talking heads on CNN, ABC, NBC,etc. will be trying to scare the daylights out of you this weekend. I'm not as worried as they want me to be. Fannie & Freddie will get through this.
And, yes ... mortgage rates did go up today. But, don't believe CNN ... it's not as bad as they say.
If you know of someone that needs a mortgage (purchase or refinance) have them contact me. I will get them the straight story.
Blessings!
Mike
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