The US Department of Treasury came out with a press release today:
Here is the link for the article - http://www.treasury.gov/press-center/press-releases/Pages/tg1059.aspx
"Obama Administration Plan Provides a Path Forward for Reforming America’s Housing Finance Market, Winding down Fannie Mae and Freddie Mac"
Here are some of the points that the press release covers:
1. Winding Down Fannie Mae and Freddie Mac and to Help Bring Private Capital Back to the Market.
2. To Fix Fundamental Flaws in the Mortgage Market.
3. Better Government's Support for Affordable Housing.
4. Establish Longer-Term Reform Choices.
And here is a link to the article in Realtor.org which commented on the plan that Obama proposes - http://www.realtor.org/press_room/news_releases/2011/02/secondary_market
NAR (National Association of Realtors) supports Obana Administration's desire for an gradual transition from the current secondary mortgage market into a new structure making mortgages more affordble and sustainable.
"NAR believes that we cannot have a restoration of the former secondary mortgage market with entities that took private profits while pushing losses onto the taxpayer. The new system must involve some government presence, outside of FHA, USDA and the Dept. of Veteran Affairs, to ensure a continued flow of capital to housing markets during economic downturns when large lenders flee the housing market" ( http://www.realtor.org/press_room/news_releases/2011/02/secondary_market )
You can be sure NAR will be working closely with congress to ensure that while reducing the government's invovement in morgage finance, that they make sure it isn't at the expense of the economy or the home buyers. We certainly don't need any further issues weighing heavy on the already stressed economy!
If you have had a chance to review the proposed changes what do you think? Is this a step in the right direction? Any concerns? What changes would you put into place if you could? How would you improve the mortgage market?
I do believe that some real help is needed and something needs to be implimented that is obtainable by the general public. Help for the consumers that have been through the recent downfall of the market and come up with cuts and bruses. Help for those that have lost everything. And help for those who are still under water. Not sure what will do the trick.
Ron & Brenda Cunningham
WEST USA REALTY
1640 S Stapley #124
Mesa, AZ 85204
*Recognized in the Phoenix Business Journal as One of The Top 50 Realtors in the Valley