ENVOY MORTGAGE Blog

This past weekend the U.S. Treasury Department effectively nationalized Fannie Mae and Freddie Mac. This was accomplished by placing the companies in what is called a “conservatorship,” which means that our federal government is now running the companies. Beyond that, the details are unimportant.

There are two things your management team believes are important.

First, Fannie Mae and Freddie Mac will continue to operate as they have for many decades. Today will be like any other day with respect to the nuts and bolts of the mortgage market. The agencies will continue to purchase loans and guarantee payment of their mortgage backed securities.

Second, the U.S. Government has told the markets that all debt instruments issued by the agencies will be supported by the full faith and credit of the United States. This will help the housing market as we deal with market declines in many areas. Having our government stand behind the agencies signals an ongoing commitment to housing.

We believe this is all good news.

While there will continue to be further developments with the agencies in the weeks and months ahead, we believe these developments are very positive for the mortgage markets and for our country’s economy. They tell the country and the world that Fannie and Freddie—and our housing markets—will remain open for business in spite of market stress.

We will keep you apprised as this situation unfolds. For now, let’s concentrate on making loans.

Your Executive Committee.

Again, we'd love to hear what you have to say about Fannie & Freddie, Interest Rates, Mortgages, Real Estate, Ou Services, etc.  Please post your responses!!