Financial stocks can’t seem to hold onto gains made earlier. Indeed, today, the stock market opened higher. However, early gains have been erased as concerns about the health of financial companies continue to loom large. Right now, these financial companies rely a great deal on a housing market recovery. While the first time home buyer tax credit was a major player in the housing market recovery, confidence in financial companies was higher.
However, now that it appears that things are snagging with regard to an extension of the first time home buyer tax credit, there are concerns about the cash flow …read more

Borrowers from Fannie Mae and Freddie Mac that purchase foreclosed homes owned by these two lenders will soon receive special incentives on the part of these companies that will help homebuyers to cover closing costs. These two companies, both of which buy mortgages in bulk from lenders, will offer these incentives at a time when many potential homebuyers are struggling.
Freddie Mac’s SmartBuy program began and July and gives homebuyers until October 30 to apply to take advantage of the offer, which allows the buyer to use up to 3.5 percent of the home’s sale price to cover closing costs. To qualify, …read more

Fannie and Freddie may see some changes.

Although some parts of the United States economy appears to be recovering, the housing crisis looks like its alive and kicking. Fannie Mae, which along with Freddie Mac has already received approximately $60 billion in federal government bailout funding, said on Friday that they need $19 billion more to stay afloat.
Fannie Mae and Freddie Mac were earlier taken over by federal regulators but continue to struggle. In the first quarter of 2009, Fannie Mae posted a loss of more than $23 billion. Freddie Mac’s numbers are expected to be released next week and those numbers are expected to also be …read more

A recent report by the Congressional Budget Office predicts that the financial sector will require much more bailout money than initially estimated. In fact, the report says that the initial estimates were short by more than $165 billion.
The new number for the bailout of the financial sector is at approximately $365 billion. In January, that same estimate was less than $190 billion. The Congressional Budget Office blames the increased cost of the bailout on the securities in question now having larger yields.
Two companies that will be eating a lot of federal bailout money are Freddie Mac and Fannie Mae. These …read more

The two largest mortgage finance companies in the United States are planning to hand out $210 million in bonuses to their employees despite taking a combined $60 billion in federal bailout money. This revelation likely won’t sit well with the general public, especially consider the outcry that was heard after it came to light that AIG gave more than $160 million in bonuses.
The two companies, Freddie Mac and Frannie Mae, combine to finance approximately half of all mortgages in the United States. After massive financial troubles, each company is now run by the federal government. In recent months, they have …read more

One of the ways that some mortgage lenders are trying to comply with the president’s foreclosure prevention plan is by offering no appraisal refinancing.

On Friday, Fannie Mae announced they are extending the suspension of all eviction proceeding through March 31, 2009. The company is implementing the Home Affordable Refinance and Home Affordable Modification initiatives as part of the Obama Administration’s Making Home Affordable program, thus causing the extension.
Additionally, Fannie Mae has created special foreclosure sale requirement in response to the Making Home Affordable program.
At financialstability.gov, you can learn more about the Home Affordable Refinance and Home Affordable Modification options. On the website, you can use their self-assessment tools to find out if you are eligible for the initiatives.
Also on the government …read more

Contrary to popular belief, the President’s foreclosure prevention plan isn’t just designed to help “losers.” Indeed, in addition to loan modification for those who had an affordable mortgage to begin with, there is help in there for those of use who have stood helplessly by while home values dropped. In order to take advantage of some of the amazing refinancing rates available right now, under the new plan, here is what is required:

Less than 20% equity in your home.
Owe no more than 5% of what your home is worth.
Be making your mortgage payments on time.
Have good credit.
Have a loan serviced …read more

Fannie Mae took its first dip into the $200 billion pool created by the federal government by asking for $15.2 billion. The company, which regulators took over in September, is the biggest mortgage-finance entity in the United States.
Currently, Fannie Mae has a net worth in the negative billions of dollars and its stock price have plummeted all the way to less than 50 cents. To put it in perspective, Fannie Mae’s stock value was approximately $35 at this point last year.
Combined with Freddie Mac, a fellow government-controlled mortgage-finance business that has already requested $13.8 billion in capital, the two businesses …read more