GOOD FOR YOU = The Impact of US Gov't TEMPORARY Takeover of Fannie Mae & Freddie Mac

Well, we sure have had an interesting 48 hours in the Hayden house! As you may have heard or read by now, the U.S. Government took temporary control of Fannie Mae and Freddie Mac yesterday (Sunday). This is the most dramatic step by the US Government to stabilize the US Economy since President Roosevelt established the Federal Housing Administration (FHA) and Fannie Mae during the Great Depression.

There are a multitude of points and conjecture that are certain to be gotten "wrong" about this in the media AND on the campaign trail this fall. Don't be sucked into the incorrect information. The inner workings of both of these firms are incredibly complex and - frankly - designed to lessen risk rather than increase it...no matter what you may read out there. So, don't be fooled by a 1500 word article that tries to explain 70 years of product development and the intertwined nature of investors, secondary markets, retail origination, etc., etc., etc. There are bound to be some things left out .

The basic premise that has been laid out before us is simple. By placing the companies into a temporary conservatorship (meaning, they will be run by the US Government through the end of 2009) the US Government has also placed the full strength of the US Treasury behind the companies so that financial markets can continue to function smoothly and without disruption. Doing so makes the investment community view the investment in mortgage bonds MUCH more favorably - driving down interest rates and making loans more available and affordable. It's that simple.

Already this morning in early market activity, we are seeing the likelihood of interest rates on a 30 year conventional/conforming loan DROPPING 0.25% to 0.375%. That would put a 30 year fixed in the high-5's for the first time since early this year - and only the second time in the last 3 years. This is a BIG DEAL. A GAME CHANGER, if you will.

I encourage you to share this POSITIVE news with everyone you know who is a homeowner, or prospective homeowner. I also ask that you let them know that I am very interested in talking with them to learn if I can help them to finance (or refinance) their home loan in a consultative, professional and thoughtful way.

For those of you who are my past clients, I will be contacting each and everyone of you individually in the coming days to share the potential positive impact this can make for your family.

My warmest regards,

Rich


Rich Hayden
Mortgage Banker, HomeFirst Mortgage Corp
207 South Alfred Street, Alexandria, VA 22314
703.926.4646 (m) 703.832.6467 (f)
Email: rahaydenjr@yahoo.com
Go To: My Website