Archive for the ‘fannie mae’ Category
Monday, March 8th, 2010
A great article published in the New York Times taps into the American psyche when it comes to homeownership. The author, Robert J. Shiller (one half of the super Swedish rock group Case/Shiller), provides a brief history behind the creation of The Federal Housing Administration (FHA) and Fannie Mae in the 1930’s. Mr. Shiller notes these institutions were created to prop up the housing market and thus stimulate employment. (One-third of the unemployed during The Great Depression were identified with the building trade.)
Mr. Shiller questions the financial soundness of having the taxpayer continue to finance (or at least insure) the American Dream. He feels the driving force behind this call to action is Americans’ belief that homeownership means the preservation of certain liberties. While few can argue with this observation, the article leaves out another important side of the story.
Prior to the advent of FHA, Americans were losing a home to foreclosure at a rate of 1,000 a day. At the time, it was not uncommon for homeowners to have multiple mortgages (each with short terms and high rates). Sound familiar? FHA mortgages were created to cure this ailment by allowing at-risk homeowners to refinance these high cost loans with low, fixed rate mortgages. The program was later expanded to help homebuyers finance their purchases. What FHA brought to the table for the first time was an amortized mortgage. Overtime, this instrument helped Americans build equity in their homes as well as build their personal wealth.
While Mr. Shiller is right to question the risk of supporting these institutions, it’s also important to look at the wealth building opportunities these lending programs have provided to disadvantaged populations. Rather than reinventing the wheel to get us out of The Great Housing Depression, we’d be wise to revisit history and learn what we can from the FHA.
DHW asks: What do you think?
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Tags: american, case, case-shiller, fannie mae, FHA, great depression, Homeownership, Housing, robert shiller
Posted in FHA, Housing, case-shiller, fannie mae, homeowners, robert shiller, shiller | 1 Comment »
Tuesday, January 12th, 2010
Although the numbers are improving, a third of loans modified by Fannie Mae and Freddie Mac early last year were delinquent after six months.
These loans were modified prior to implementation of Obama’s Home Affordable Modification Program.
DHW asks: Do you think loan modifications are making a difference?
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Tags: fannie mae, freddie mac, HAMP, home affordable modification program, loan modifications
Posted in HAMP, Uncategorized, fannie mae, freddie mac, home affordable modification program, loan modification | 1 Comment »
Saturday, November 7th, 2009
Citing a loss too great for taxpayers, the US Treasury Department blocked Fannie Mae’s nearly $3 billion sale of unused low-income housing tax credits to Goldman Sachs Group and Berksire Hathaway.
DHW asks: Do you agree with the Treasury’s decision?
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Posted in Housing Article, berkshire hathaway, fannie mae, goldman sachs, housing tax credits, treasury | No Comments »
Thursday, November 5th, 2009
In a deal that still needs Treasury Department approval, government run Fannie Mae reached an agreement with unnamed buyers to sell approximately $2.6 billion in unused low-income housing tax credits. The Treasury Department said it would approve the sale “if it was clearly in the interest of taxpayers.”
DHW asks: Do you think this deal is in the best interest of taxpayers?
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Tags: 2.6 billion, buyers, fannie mae, freddie mac, government, Housing, housing news, housing tax credits, low-income housing tax credits, Real Estate, real estate news, seller, taxpayer, taxpayers, treasury, treasury department, unused low income tax credits, unused tax credits
Posted in Housing Article, fannie mae, housing tax credits | No Comments »
Thursday, November 5th, 2009
Fannie Mae is expanding its ‘Deed for Lease’ program to help thousands of homeowners facing foreclosure. The program is designed for those who want to stay in their homes but do not qualify for President Obama’s loan modification program. Participants transfer their title to Fannie Mae and rent back for up to one year.
Some facts about the program:
- Fannie Mae has hired an outside agency to manage the properties (name of agency has not been released)
- Rent cannot exceed 31% of the homeowners’ pretax income
- Homeowners must be able to prove they can afford the market rent (established by the management company)
- Participants must use the home as their primary residence
DHW asks: Do you think ‘Deed for Lease’ is a good idea?
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Tags: barack obama, deed for lease, deed for lease guidelines, deed in lieu, deed in lieu of foreclosure, fannie mae, foreclosure, freddie mac, guidelines, home owners, homeowners, Housing, lease, leasing, Obama, President, president barack obama, President Obama, Real Estate, real estate news, rent, renting, Sales, short sale, short sales, shortsale, shortsales
Posted in Housing Article, deed for lease, fannie mae, foreclosure, lease, rent | No Comments »
Monday, November 2nd, 2009
Last Thursday, the US congress passed a resolution to extend the current loan limits for FHA, Fannie Mae and Freddie Mac through calender year 2010. The resolution will require President Obama’s signature, which is expected shortly.
Visit these sites to find current loan limits in your area.
FHA
Fannie Mae
Freddie Mac
DHW asks: Will the higher loan limits help you purchase a home?
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Posted in FHA, Housing Article, congress, fannie mae, fannie mae loan limits, fha loan limits, freddie mac, freddie mac loan limits, higher loan limts, loan limits, loan limits in your area | No Comments »