Freddie Mac CFO Dead; Suicide Suspected

This is not the type of news that I like to report on my blog, but the rampant rumors about Freddie Mac’s solvency coupled with some wild speculation about the many plausible reasons for this act has compelled me to post this story.

According to the New York Times: “David B. Kellermann, the acting chief financial officer of the troubled mortgage giant Freddie Mac, was found dead Wednesday morning at his home in Northern Virginia, the police said…see the rest of the Freddie Mac CFO deal and suicide is suspected sotry.

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Fannie Mae Makes it Harder for Condo Buyers

This article entitled “Fannie Mae adds restrictions for backing condo mortgages : WSJ – Update” appeared in the RTTNews on March the 18th, 2009. The staff writer wrote:

“Government backed mortgage finance company Fannie Mae (FNM) has enforced stricter guidelines for obtaining condominium mortgages, effective March 1, the Wall Street Journal reported Wednesday. The restrictions come at a time when the U.S. housing market is braced for a condo rush this year, and are expected to add pressure on developers struggling in the ongoing housing slump…continue reading the Fannie Mae makes is harder for condo buyers to attain loans article.

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To Refinance or Not to Refinance, That is the Question

Low mortgage rates are expected to continue…at least according to the Washington Post and the Mortgage Bankers Association. Although there have been, and will continue to be, variations from week to week, experts predict rates will remain low for a while, but won’t go very much lower…read the entire “to refinance or not to refinance” story.

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Fannie Mae Releases New Short Sale Guidelines

Fannie Mae corporate headquarters

Fannie Mae just released new guidelines – effective March 1, 2009 – affecting short sales. These changes are very much welcomed by any Realtor who has been pressured to reduce his/her commission on a short sale:

“Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers Effective March 1, 2009, closing of pre-foreclosure sales may not be conditioned upon a reduction of…read the rest of the Fannie Mae releases new short sale guidelines article.

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You Can’t Blame Bush for the Economy!

I normally write a very straight forward, non-opinionated blog, but today I digress. I simply cannot take hearing one more person blaming the Bush administration for today’s current economic recession. Yes, the Bush administration did contribute, but the whole chain of events was set in motion by the Clinton administration. In fact, I can tell you that the Clinton administration put us on this collision path with Bank failure on September 30th, 1999. Yes, it was one of those “I’m leaving office, now I am going to make all of my constituents happy” policy changes. It was banking sabotage. It was irresponsible and reprehensible. In an article dated the same day in the NY Times:

NY Times predicts 2008 bank failures A little research can go a long way… pay very close attention to this part…read the rest of the Blame Bush for the Economy article and opinions.

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Mortgage Rates Absolutely Plunge

mortgage rates drop largest in more than 7 years

In what was the largest 1 day drop in more than seven years, the average mortgage rate for a 30-year fixed mortgage fell to about 5.50% last night after starting the day at 6.38%.

According to Bloomberg.com:

“The central bank pledged to purchase up to $500 billion in so-called agency debt as well as up to $100 billion in direct debt of Fannie Mae and Freddie Mac, the world’s two largest mortgage buyers, and Federal Home Loan Banks. The announcement was released at 8:15 a.m. New York time yesterday.

The Fed also said it would set up a $200 billion program to support consumer and small-business loans. Together, the programs almost match the $864 billion of U.S. currency in circulation, as reported by the central bank in a Nov. 20 statement.”

It is refreshing to finally see the Fed make a material move that will actually help the Nashville real estate market rather than fundamentally unsound Wall Street companies.

Will this change help the commercial market?

It is our opinion that only a trickle down effect will be felt in the Nashville commercial market, there are just too many other deep issues at play.

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