Find out if you have a Freddie Mac-insured mortgage and qualify for borrower help. This program helps qualified homeowners avoid foreclosure.
WASHINGTON — Mortgage giant Freddie Mac is reporting net income of $2.2 billion for the first quarter, reversing a loss in the same period of 2016. The government-controlled company said Tuesday that its earnings in the January-March period were. President-elect Trump's nominee for Treasury Secretary, Steven Mnuchin, on Wednesday waded into the long-running battle over the future control of Fannie Mae and Freddie Mac, the largest players in the U.S. Home mortgage market, saying that the. As a leading single-family rental investment and management company focusing on quality, affordability and customer service, TrueLane provides a resident experience to make tenants feel at home.
The company currently owns over 1,000 homes across.
Even though Fannie Mae and Freddie Mac were Congressionally-chartered, they are also private, shareholder-owned corporations. They have been regulated by the since 1968 and 1989, respectively. However, Fannie Mae is more than 40 years old. President Franklin Delano Roosevelt's created Fannie Mae in 1938 to help jump-start the national housing market after the Great Depression.
And Freddie Mac was born in 1970. In 2007, noted that today there is 'no explicit government guarantee of their debt.' In September 2008, the US government seized both Fannie Mae and Freddie Mac. A occurred in the United States between 2007–2010, in part as a result of a weakening economy but also as a housing bubble which had pushed housing prices higher and higher collapsed.
Houses were large, their price tags steep, but mortgages were inexpensive and easy to get, and the prevailing real estate theory was that it was smart to buy (much) more house than you needed because it was a solid investment. If they wanted, buyers could refinance or sell the house because the price would be higher than when it was purchased. By mid-2008, the two firms had expanded to almost $1.8 trillion in combined assets and $3.7 trillion in combined net off-balance sheet credit guarantees. Over the same period, however, they posted $14.2 billion in losses and their combined capital only amounted to about 1 percent of their exposure to mortgage risks.
![Help Help](http://myhome.freddiemac.com/images/site/social_myhomews.png)
![Freddie mac help for homeowners loans Freddie mac help for homeowners loans](/uploads/1/2/5/3/125381924/905170326.jpg)
Despite efforts in the summer of 2008 to prop up the failing GSEs (the Housing and Economic Recovery Act on July 30 temporarily gave the US Treasury unlimited investment authority), by Sept. 6, 2008, the GSEs held or guaranteed $5.2 trillion dollars in home mortgage debt.
One stipulation to the bailout was that going forward the quality of housing loans backed by Fannie Mae and Freddie Mac had to improve. Investigations by economists Dongshin Kim and Abraham Park reported in 2017 indicate that the quality of post-crisis loans is indeed higher, particularly in the requirements on the levels of debt-to-income (DTI) ratio, and credit scores (FICO). At the same time, loan-to-value (LTV) requirements had been loosened since 2008, allowing a steady increase in the number of first-time home buyer loans. By 2017, Fannie and Freddie had paid back $266 billion to the US Treasury, making their bailout a tremendous success; and the housing market has recovered.
However, Kim and Park suggest that continued monitoring of the quality of the mortgages would be prudent. While FICO and DTI are indicators of the borrower's ability to pay their mortgages on time, the LTV is an indication of the borrower's willingness to pay. When the house value falls below the loan balance, people are less likely to pay on their mortgages.