Main Street, Wall Street and the GSE's...
Posted July 18, 2008 3:37 p.m. EDT
Updated July 18, 2008 3:50 p.m. EDT
This past week was quite the roller coaster ride for the GSE’s (Government Sponsored Enterprises) – Fannie Mae and Freddie Mac. As all of us in the industry knew that there was never a doubt as to whether the Federal Reserve would step in to bail out the GSE’s - but national media certainly tried to spook the consumer. All at a time when consumer confidence remains at record low levels.
While the internals of the GSE’s may be ripe for a change – and due for a change – the outcome as to how it influences main street with respect to mortgage origination is minimal at best. So what does this mean to us here in the triangle housing market? Really nothing at this point.
However, expect to see more transparency at the corporate level for Fannie and Freddie – even making them potentially part of the Fed at some point. Given the fact that Fannie and Freddie ARE the irrigation system and fertilizer for the housing market – let’s all hope that conditions for growth are ripe in the weeks and months to come.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.