Will Fannie and Freddie Make It?Ed Craine
August 26, 2008 — 1,221 views
That seems to be the question on everybody's mind lately. It seems like every day the news gets worse as their stocks get pounded. Insiders have been betting for some time now that the losses will mount and that eventually the government will have to step in.
While this isn't good news for Fannie and Freddie stockholders, I'm confident that the government will step in if and when needed. The Fed and the Treasury have already taken other bold steps to help us navigate the turbulent mortgage meltdown waters. And they've indicated that they'll step in to shore up Fannie and Freddie if needed.
Some question whether this is the right thing to do and wonder if it isn't a bailout. Let's face it, we need a well functioning credit market for mortgages in order to stabilize the housing market to make mortgage money available for qualified borrowers. Otherwise, the bottom could drop out from under the economy and we could have an economic downturn the likes of which we haven't seen since the great depression.
What do you think?
Ed Craine is the CEO of award winning Smith Craine Finance, one of the oldest independent Mortgage Companies in San Francisco, California. A 25+ year veteran of the real estate financing industry, Ed has originated and negotiated loans in excess of $2 billion, to include both commercial and residential properties. He has simultaneously held such notable positions as Vice President of the California Association of Mortgage Brokers (CAMB), as well as serving as the Public Relations Committee Chairperson of the 5,000 member strong association during 2007, the year in which the mortgage industry received more media attention than in recent history. Ed currently also serves as 1st Regional Vice President of the Certified Commercial Investment Member Institute (CCIM). He will be inducted as Vice President of the Southwest Region of CCIM in September 2008.