OT Freddie Mac and the credit market?

ParanoidAndroid · Sep 8, 2008

I'm have an RE license, so I should probably know better than this, but for the more experienced folks: What does the FRE bailout mean for the credit market in terms of availability? I could see it going both ways.

1 - Credit market is tight right now because the secondary market (ie FRE, et al.) are (were) in lock-down mode. The takeover could ease that, having an overall positive effect on the market and national economy as a whole

2 - The bailout will come with conditions on getting their affairs in order - you don't take on much new business when you're still trying to clear your affairs. Therefore, the bailout will have a tightening effect on the credit market.

I ask because the wife & I are in the process of buying a new home. Loan has been applied for, but nothing is set in stone yet . . . just a little concerned.

DDz00 · Sep 8, 2008

i got screwed....

damn... do I need to hold or what?

getting scary now.

fhmesq44 · Sep 8, 2008

you look into FHA loan? From what I understand a bit of a pain in the ass but an option.

Fishhead · Sep 8, 2008

The king of ecomomics, a professor at Yale, stated we will see yet another 20% decline in home values.

ParanoidAndroid · Sep 8, 2008

fhmesq44 said:
you look into FHA loan? From what I understand a bit of a pain in the ass but an option.

Yes, our current app is for FHA loan. BUT, that doesn't really help because an FHA loan is still funded by the "usual suspects", its only federally insured. In fact, the whole reason why FHA loans exist is because the Govt wanted to standardized the process, which would make the loans easier to sell in the secondary market. FHA basically created the secondary - but if FRE is part of the secondary, it could still have a negative effect on these loans.