Saturday, November 14, 2009

Fannie Mae Still Asking for Help

The latest request from Fannie Mae is for an additional $15 billion from the government because of losses in the third quarter which it claims is due to homeowners falling behind on their mortgage payments and the ever increasing unemployment rate. The default rate increased to 4.7% and is even higher in Florida and Nevada, with over 11% of the mortgage loans in default.

"There is significant uncertainty regarding the future of our business, including whether we will continue to exist, and we expect this uncertainty to continue," Fannie Mae said.

Fannie Mae and Freddie Mac guarantee approximately 31 million mortgage loans or about half of the mortgages in the U.S.

Fannie Mae lowered the requirements for borrowers prior to the recession by offering high risk loans which are now defaulting including homeowners with good credit.
This is the fourth request by Fannie Mae for government aid which now totals $60 billion in aid so far.

Fannie Mae stated that it would allow some homeowners who are facing foreclosure to rent their homes for a year to help reduce the number of homeowners losing their homes.

This new program is called the "Deed for Lease" program and will allow homeowners to transfer their deed title to Fannie Mae by signing a one-year lease which includes potential month-to-month extensions after the one year period.

1 comment:

Steve said...

Great blog... Wish I could see it... lol

Debt Help FL