Well, the ups and downs of the Wall Street markets and the capital markets have been front page news these past few weeks. But the big news is that something substantial has developed out of all of this. Fannie Mae and Freddie Mac have been replaced by a new government agency that incorporates both of them with Ginnie Mae. The new agency is the Federal Housing Finance Agency (FHFA). I don't know if it will morph into a name like Ginnie Mae or Fannie Mae, but it was inevitable once the Feds took back Fannie and Freddie.
I personally hope all the deadwood that the government allowed to pile up in both agencies get pushed out onto the streets and have to find real gainful employment in the open market. Good luck to them all. If they were there to oversee the management of the mortgage industry and to help homeowners, they failed miserably. Perhaps their judgement was clouded by 3 martini lunches and spending too much time in posh private spas! (ENOUGH!!!!!)
Anyway, the new agency, FHFA, will look more like Ginnie Mae than its predecessors. The new loan limits across the board will be much like FHA limits. The lowest will be $417,000 for conventional lending and the highest will be $625,500 in the high cost areas. There may be some adjustments in high cost urban areas as well.
There will be other issues to resolve as this begins to be implemented after the first of the year.
This blog will keep you informed.
I would be pleased to look into any concerns or added information.
Just drop me a line.
Tuesday, November 11, 2008
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