Maureen Megowan's Blog

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Fannie Mae and Freddie Mac - Effect on Financing homes in Palos Verdes Estates and Rancho Palos Verdes

Although these two institutions buy mortgages that normally meet their very conservative guidelines to provide new funds for lenders to make new mortgages, both Fannie Mae and Freddie Mac, unfortunately also invested in riskier "Alt A" loans and derivatives which has led to their current troubles. They are an integral part of the home financing system in this country. Over half of all mortgages in this country are owned by these two companies.

Although they were originally chartered as Federal Government Institutions, they are private organizations, but with the implicit belief by investors that the U.S. Government will support them and not let them fail as they are so important to our country and its economy.  Without these two institutions, there would be almost no funds available for homeowners to obtain mortgages. Therefor, whatever the government needs to do to support Fannie Mae and Freddie Mac, they need to do.

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.

Comment balloon 1 commentMaureen Megowan • July 17 2008 01:10AM
Fannie Mae and Freddie Mac - Effect on Financing homes in Palos…
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Although these two institutions buy mortgages that normally meet their very conservative guidelines to provide new funds for lenders to make new mortgages, both Fannie Mae and Freddie Mac, unfortunately also invested in riskier "Alt A"… more
Palos Verdes Peninsula Dog Park
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My husband, Bruce is trying to build up support for a dog park on the Palos Verdes Peninsula. This is because there is nowhere on the Peninsula that a dog owner can legally run their dog off leash. Our dop Pepper is a miniature Austrailian Shepherd,… more
Where did the Peacocks in Palos Verdes come from?
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Francine A. Bradley, Ph. D. UC Davis, in a report to the City of Rancho Palos Verdes on managing peafowl on the Palos Verdes Peninsula, states that the original peacock colony on the Palos Verdes Peninsula was a gift of 16 birds from the daughter of… more
Property Tax Rates for the South Bay Los Angeles and Palos Verdes…
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I have the only web site information on the exact property tax rates for each of the beach cities in the South Bay Los Angeles and Palos Verdes Peninsula real estate market (including the cities of El Segundo, Manhattan Beach, Hermosa Beach,… more
Ujnderstanding the The California Residential Purchase Agreement..
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Trying to understand the The California Residential Purchase Agreement (California Association of Realtors form RPA-CA) can be an extremely daunting task, with the average home buyer typically overwhelmed by the legal nature of this document. This… more
Staging your Home to sell in Palos Verdes and the South Bay of Los…
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Staging your home to sell is one of the most important things that you can do to effectively market your home for sale. Staging is simply the process of putting the "best foot forward" in presenting your property for sale. Most of the… more
Palos Verdes and South Bay Los Angeles Real Estate Home Improvements
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Home Improvements can significantly increase the market value of your home, but it is important to understand the ratio of increased home value versus the cost of the improvement. Not all home improvements yield the same results in recovering their… more
Palos Verdes and South Bay Los Angeles Real Estate Market Update
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The media has been pounding us over the head with doom and gloom reports of the real estate market. It is true that most of the markets nationally, and many in Southern California, have been significantly impacted, however the story in the… more
Rancho Palos Verdes History - What really happened when they closed…
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When Marineland closed in December1986, Harcourt Brace Jovanovich, which owned Sea World in San Diego, purchased Marineland, ostensibly to continue to operate it. Their intent, however, was to purchase Marineland solely to acquire Corky and Orky, a… more
Rancho Palos verdes City Hall used to be a Nike missle site
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From 1955 to 1974, a Nike Missile battery was located at the site of the current Rancho Palos Verdes City Hall. The City Hall for Rancho Palos Verdes was relocated to the administration buildings of the former Nike missile site in 1975, shortly… more