[categories: Washington bankruptcy attorney]
The Investor’s Business Daily reported on Friday, September 3, 2010, that the federal regulator of Fannie Mae and Freddie Mac has ruled that 21% of all refinance loan purchases under must be granted to lower income families. The earlier proposal had been 25%.
The federal government took control of Fannie Mae/Freddie Mac in 2008 amid losses in large part attributable to the agencies’ political agenda to grant more loans to lower income borrowers.
With the government now running Fannie Mae/Freddie Mac pursuant to the federal takeover, it appears that the politicized lending decisions will continue. An earlier overemphasis upon lending to the economically disadvantaged was significantly responsbile for the recent Fannie Mae/Freddie Mac failures of 2008.
In this writer’s humble opinion, Freddie Mac/Fannie Mae should concentrate on lending to the strongest borrowers so as to ensure the ongoing solvency of both programs.
IDEAS FOR ACTION: If you are of lower income and wish to buy a home or obtain a refinance of your presently difficult loan, then ensure you request a Fannie Mae/Freddie Mac product by name from your mortgage broker, or better yet, appproach the Federal Housing Finance Agency yourself to see what Fannie Mae/Freddie Mac options are available to you.