OFHEA Loosens Federal Lending Captail Requirements, Call Your Lender ASAP!

The Office of Federal Housing Enterprise Oversight, (OFHEO) announced today that it would be loosening the capital requirements on Fannie Mae and Freddie Mac such that an additional $200 billion in liquidity will become available to the mortgage pipeline. What’s that mean in english? Fannie Mae and Freddie Mac lend out money but need to hold a certain amount of reserve in the event of calamity, the OFHEA announced that that reserve amount has been reduced by $200 billion. That $200 billion will then go into the mortgage pipeline and trickle out to additional funds for lending, great news for folks who are fearful of a potential foreclosure.

The good news is that if you’re looking at an ARM resetting in a few months, now is the time to call your lender and negotiate a new loan. Every single day you wait means that $200 billion is trickling away and the probability you get a good deal gets smaller and smaller. The bad news is that if you’re already in foreclosure, it’s too late to take advantage of this change.

So, call your lender and face the problem head on. Please don’t wait and hope it’ll get better, this is the hope you’ve been waiting for - now go get it.