NAR Responds to Fannie Freddie Conservatorship

Here is NAR’s Official Response to the Fannie Freddie Conservatorship:

Q. What does this mean for Realtors and homebuyers?

A. Through its actions, the federal government has sent a clear signal that the mission of the GSEs to provide a stable secondary mortgage market must not be interrupted. The GSEs may increase value of the MBSs that they hold in portfolio up to a total of $850 billion between now and the end of 2009 (with a 10 percent annual reduction after that). This will increase capital available for mortgage lending during the current housing and mortgage downturns. In addition, the Treasury Department will purchase MBSs which will also increase demand for MBSs. Both of these activities will assure a steady flow of mortgage funds, at lower interest rates, which is expected to spur an increase in home sales.

Check out the full FAQ here:

Fannie/Freddie FAQ