There’s a protest going on in DC. January 4, 2009

The National Association of Realtors is protesting an increased fee being charged by Fannie Mae.  The fee, as much as 3.25% of the loan amount, is being charged to lenders who pass on to borrowers with credit scores as ‘low as 690.’  See article by James R. Hagerty in the Wall Street Journal.

Let’s do a quick analysis.  This really makes sense.  If you have a loan amount of $200,000, then the fee would be $6,500.  And, that doesn’t include any title company, broker fees, appraiser fees, etc.  Great way to jump start economy, Fannie.

Since the average credit score nationwide is around 690, this hurts the average borrower.

Good luck to the National Association of Realtors!

Market is opening up. September 8, 2008

One of the results of the current credit crisis has been the extreme tightening of the mortgage market.  Plus, rates are higher than they should be.  That is until today!  Yesterday Treasury Secretary Paulson announced the U.S. government bailout of Fannie Mae & Freddie Mac.  Fannie & Freddie own approximately 7 TRILLION in mortgages.  Yes, it will cost the taxpayer, but alternative of doing nothing could end up costing us significantly more.

Look at article in The New York Times for more info.