Mortgage Blog

GSE loans' interest rate will be reduced to 4% automatically?

September 5th, 2010 6:51 AM by Eric Fang

I just got this from the Mortgage Magazine report Friday:

Treasury tried to have the GSE(Fannie Mae and Freddie Mac) automatically
reduce the interest rate on all outstading GSE loans to a market rate of
around 4%. This idea is crazy and interesting.

We are waiting to see how they can do it?
1)How they can compensate those investors who holds those loans.
2)What they are going to do with those non-30 yr fixed loans?
How abour ARM loans?
3)How about those loans not owned by GSEs?

I already have some clients told me to get Fannie Mae loans to them.
The only thing I can say is "This lender will sell most of the loans
to Fannie Mae".

Seems like there are a lot of benefits to get a GSE loan. So broker's
business should stay good since our originated loans all should be sold
to GSEs.

Posted in:General
Posted by Eric Fang on September 5th, 2010 6:51 AM



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