Freddie Mac’s $2.5 Billion Loss

As the nation’s second largest provider of residential mortgages, Freddie Mac recently announced a record loss of $2.5 billion as a result of the continually worsening housing market. Freddie Mac plans to take a cautious approach in 2008 until it becomes clearer what direction the credit market will be headed. According to The New York Times, Freddie Mac is struggling to balance growing business with efforts to protect itself from further loss by tighten underwriting guidelines.

To read the complete article on Freddie Mac, please visit: http://www.nytimes.com/reuters/business/business-freddiemac-results.html?ref=business

Rules Ease on Fannie Mae and Freddie Mac

According to The New York Times, federal regulators in charge of Fannie Mae and Freddie Mac, the largest buyers of American home mortgages, plan to lift limits on the number of loans and securities the companies can own. This move could be of enormous help in strengthening the currently volatile and weakening housing market. This decision by federal regulators came as a result of losses within Fannie Mae and Freddie Mac that reflected a rise in mortgage defaults and bad investments.

For the complete story, please visit: http://www.nytimes.com/2008/02/28/business/28housing.html?ref=business

NeighborWorks America Recognized for Successful Foreclosure Prevention Counseling

HUD Secretary Alphonso Jackson has issued a statement praising NeighborWorks America for its generous award of $130 to HUD-approved national counseling intermediaries and state housing finance agencies. According to HUD, these funds will be directed toward providing thousands of families with counseling on how to prevent foreclosure. The ability for HUD to provide foreclosure prevention counseling is of crucial support to the American Dream, and the partnership between HUD and NeighborWorks will be an effective aspect of their ability to offer both immediate and long-term assistance to struggling American families

For more information on this effort, please visit: http://www.hud.gov/news/release.cfm?content=pr08-025.cfm&CFID=4115041&CFTOKEN=52052542