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Federal Government Getting Out of the Mortgage Business

Fannie Mae and Freddie Mac were created by the Federal Government to assist homeowners in obtaining mortgages to purchase single family and/or multiple family homes. Freddie Mac and Fannie Mae are not doing well. They are both bankrupt. These organizations are currently being bailed out by the Federal Government.

President Obama and his administration would like to abolish Fannie Mae and Freddie Mac. Both the White House and Congress are in agreement that the long term future of the mortgage market should be determined by private enterprise and not by federally backed agencies.

Today, tax payers are shelling out billions of dollars to keep Freddie Mac and Fannie Mae financially solvent. These organizations are involved in almost 90% of all mortgages in the United States. Freddie Mac and Fannie Mae buy mortgage loans from primary lenders (banks). They put them together in investment products and sell them with guarantees in the event the borrower defaults. The initial purpose of Freddie Mac and Fannie Mae was to facilitate the purchase of homes by middle class Americans. The underlying reason for their creation was to allow more Americans to obtain the American dream, the ownership of a single family home at an affordable mortgage rate.

Three Proposals for the replacement of Freddie Mac and Fannie Mae

Proposal 1: The Federal Government would not be involved in the underwriting of home mortgages. The Federal Housing Administration would simply police mortgage activities.

Proposal 2: The Government would act as an insurer of mortgages.

Proposal 3: The Government would act as an insurer of only targeted mortgages. Under this proposal, the government would be involved more as a reinsurer of mortgages.

Congress and the Obama Administration are now discussing these proposals.

New York Foreclosure Defense Lawyers

Our law office can help you with mortgage modifications. We are familiar with mortgage modification programs that fail to meet consumers’ needs. We represent New Yorkers in foreclosure litigation. We defend them from these proceedings. We litigate defective foreclosure lawsuits, predatory lending, bad faith and defective mortgages. We attend foreclosure court conferences on behalf of our clients. We have decades of experience regarding real estate transactions involving mortgages. We maintain a foreclosure blog to educate New Yorkers concerning relevant issues involving mortgages, foreclosures and real estate matters.

We file Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. We explain to our clients why they should or should not file bankruptcy. We utilize bankruptcies to stop foreclosures in their tracks. When the bankruptcy is completed, we are available to assist our clients in re-establishing their credit.

Should you have a foreclosure or mortgage modification problem, feel free to call us a 1-800-344-6431, 516-561-6645 or 718-350-2802.

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We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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