Thoughts from Jenny

    So many of us have read in the news about the mortgage business making changes.  As the government tries to pull out of the mortgage business, Fannie and Freddie backed mortgages will become fewer and fewer.

    Granted it was the government who backed the majority of the loans during the housing crisis, because too many local banks were failing.  So what will happen?

    An exit strategy is being discussed by the government to only take on QRM loans (qualified residential mortgages).  What is a QRM?  Glad you asked.  That is where the buyer will have good credit scores, able to put down 20% of the purchase price, and will be less of a risk for the government to take on.  The whole theary (as I read it) is to put some of the risk back on the private banks and reduce some of the risk for the government.

    So many private banks "were" quick to give loans, but then rushed to sell them off to the government.

    Do I think this will happen any time in the very near future?  I don't think so.

If you have questions about the housing market, or lending requirements, don't hesitate to send them to me.  I will do my best to get them answered.

                                               Jenny McGuire