federal oversight for Freddie and Fannie

September 7, 2008
The Office of Federal Housing Enterprise Oversight has announcedthis morning, it is placing mortgage giants under conservatorshipin an effort to stabalize their ability to perform under tightercredit restrictions and low economic growth.
OFHEO cited the importance of these organizations and theirrole in residential real estate in their press release issuedSunday morning.
http://www.ofheo.gov/newsroom.aspx?ID=456&q1=1&q2=None
James Lockhart, Director Federal Housing Finance Agency, has taken steps over the past six months to help stabilize Fannie and Freddieincluding reducing capital requirements, removing portfolio caps, and others.
"I have determined that the companies cannot continue to operate safely and soundly and fulfill their critical public mission".Lockhart said.
Also released was a conservatorship Q & A which defines the conservators roleas well as the actions they will take.View the conservatorship Q&A herehttp://www.ofheo.gov/media/pdf/FHFACONSERVQA.pdf

John Wall
Realtor
CENTURY 21 RESULTS
www.teamresults21.com

Of the homes sold in May, 38.3 percent were foreclosure resales, up from a revised 37.6 percent in April and 5.4 percent in May a year ago.
The median price paid for a home last month was $339,000, down 4.2 percent from $354,000 for the month before, and down 30.0 percent from $484,000 for May a year ago when the median was at its peak. Around half the drop in median is due to depreciation, the other half due to shifts in the types of homes selling, and how those homes are financed.
The typical mortgage payment that home buyers committed themselves to paying last month was $1,569. That was down from a revised $1,645 in April, and down from $2,266 for May a year ago. Adjusted for inflation, mortgage payments are back to where they were in mid 2003. They are 23.3 percent below the spring 1989 peak of the prior real estate cycle. They are 38.0 percent below the current cycle's peak in June 2006.

Direct from the LA Times' Foreclosure series

John Wall, Realtor
foreclosure avoidance specialist

CENTURY 21 RESULTS
www.TeamResults21.com