WORRIED? Freddie Mac and Fannie May - Don't Be!

"The only thing we need to fear is fear itself". This was said a long time ago when this country was in much worse shape then it is in now.

We do not have the ability to predict the future, but we do have information in front of us in order to make educated decisions about what our next moves will be. Personally with the information that I have read and statements from the CEO of Fannie Mae I feel more confident that the government is being proactive instead of reactive in this housing correction. The statement attached below clearly says that Fannie Mae and Freddie Mac continue to hold more than adequate capital reserves.

The reality is you purchase a stock when prices are down. You should be purchasing homes when sellers are more willing to negotiate. This is good time to evaluate your credit standings, rid your self of high interest credit card debt, and set a stable foundation so you can still focus on future financial stability.

Please contact me for a FREE Mortgage Evaluation.

Jeff Forman, D N J Mortgage, Raleigh, NC 919-337-5485

The following are articles and statements in regards to Fannie Mae and Freddie Mac current standings:
WASHINGTON (AP) - The U.S. Treasury and the Federal Reserve announced steps Sunday to shore up mortgage giants Fannie Mae (FNM) and Freddie Mac. Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That's about half the outstanding mortgages in the United States.
Secretary Henry Paulson said the government is planning to expand its current line of credit to the two companies should they need to tap it and Treasury could buy equity capital in the companies - if needed.

News Release


July 13, 2008


Statement by Daniel H. Mudd, President and CEO
Fannie Mae appreciates today's announcements and the expressions of support for the GSEs as shareholder-owned companies that play a critical role in the U.S. housing finance system. We are grateful for the leadership of Secretary Paulson and Chairman Bernanke. We also look forward to working with Treasury, OFHEO and Congress on swift passage of the new legislative proposals, as well as the important initiatives underway to assist homeowners and help restore stability to the housing market. We continue to hold more than adequate capital reserves and maintain access to liquidity from the capital markets. Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market. We will continue to do our part to provide liquidity, stability and affordability to the housing market now and in the future.

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The above Blog from Kaspar Team Preferred Lender for Cary, Raleigh and Durham area Real Estate. Introducing Jeff Forman, of DNJ Mortgage, located in Raleigh,near the RBC Center, convenient to Cary, Durham, Raleigh, Wake Forest, Garner and points East.

DNJ and the Kaspar Team work close together to aquire the best rates and terms for buyers of Raleigh and Cary area Real Estate.

Jeff Forman (919) 337-5485 or Vic Kaspar, Kaspar Team, RE/MAX (919) 609-6999 Vic@KasparTeam.com