Today’s real estate and mortgage market has led to something that is somewhat scary. Most people in America are looking for the perfect home, their American dream, and your dream home needs to be a dream, it doesn’t need to become a nightmare and if you buy a home with no money in savings for emergencies then everything that can go wrong will [The Early Show, House Hunting]. That is why it is important to have a good strong down payment of about ten to fifteen percent and no previous debt such as car loans. People who are not prepared to buy a home are the ones who are making the mortgage and real estate market become a scary topic.
The Federal National Mortgage Association, commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government sponsored enterprise, but founded in 1938 during the Depression. Contrary to some beliefs, Fannie Mae does not make home loans directly to consumers, but rather functions as an intermediary in the U.S. secondary mortgage market. By purchasing and securitizing mortgages, Fannie Mae facilitates liquidity in the primary mortgage market by ensuring that funds are consistently available to the institutions that do lend money to home buyers.
On September 7, 2008, James Lockhart, director of the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac were being placed into conservatorship of the FHFA. The action isone of the most sweeping government interventions in private financial markets in decades. As of 2008, Fannie Mae and the Federal Home Loan Mortgage Corporation owned or guaranteed about half of the U.S.'s $12 trillion mortgage market.
Several question who exactly benefits from the new Fannie-Freddie plan and the answer is simple. This is a new housing rescue plan from the administration targets some of the most troubled homeowners. The Federal Housing Finance Agency , which took control of Fannie and Freddie in September, together...