mortgage  Search | Contact
  
Mortgage
Top Headlines 

  Add to Google
Add to My Yahoo!
Add to RSS to MSN
spacer

   
AddThis Social Bookmark Button
   
 
 
Key Benefits
-
Research local housing trends and market statistics related to mortgages.
-
Get real-time national and local mortgage rates.
-
Explore mortgage refinance and home equity loan options.
-
Leverage the equity in your home to pay off other outstanding debts or create additional cash flow.
-
Estimate monthly payments with our debt consolidation mortgage calculators.
Mortgage Directory
 
 
What is the loan type?
What is the property type:
What's the Property State?
What is your credit history?

(All credit types OK!)
Mortgage Lenders and Mortgage Investors on Their Own

Add to Google Add to My Yahoo! Add to RSS to MSN

 

by Gaurav Bhola, MSM, Managing Editor

Tuesday, September 4, 2007


The language emanating from Federal Reserve Chairman Ben Bernanke and President George W. Bush is loud and clear; there will not be any bail out of mortgage lenders, mortgage brokers, and mortgage investors. 

President Bush and Bernanke were blunt in their message that mortgage lenders will not be given any government aid for financial sustenance because they will not learn from their past mistakes and simply repeat them in future. 

 

Basically, mortgage lenders and mortgage-backed securities investors will have to learn tough lessons, no sops will handed out to extricate them from their deteriorating financial crises. Last Friday, the Fed made it its mission to navigate the economy through the rough waters of the current mortgage and housing market. President Bush held a press conference in the Rose Garden last Friday, outlining his steps to help troubled borrowers. 

 

Bush intends to have the federal government take action to address the rising foreclosures and the mortgage conundrum. Government help will not be given to overleveraged residential real estate investors or homeowners.  According to Bush, the government aid recipients will be homeowners “…who could get through this difficult time with a little flexibility from their lenders or a little help from their government."

 

Bush’s and the Fed’s double whammy messages touched upon similar underlying themes; that the government is on top of the crises. They wanted to reassure the American public, Wall Street, and the international audience that the mortgage, foreclosure, and home buying crises will not affect the soundness of the national economy. 

 

The limited government action will help certain beleaguered homeowners attempting to make their monthly mortgage payments. The Fed will concentrate on implementing policies based on developments in the financial markets that can have a broader impact upon the economy. 

 

So far, the most publicized actions of the Fed have been to infuse billions into the banking sector and to cut the discount rate it charges to banks for loans, in the hopes of curtailing a growing credit crunch. But these measures have been temporary, band-aiding growing illiquidity concerns. 

 

Many believe that the Fed may be forced to finally cut interest rates, possibly by a quarter percent to 5.25% by mid-September. As it stands now the Fed has tried everything in its bag of economic tricks to sustain a sound economy except, to cut interest rates; it hasn’t lowered interest rates in 48 months. 

 

If the Fed cuts the interest rates, then it can be a boon upon the economy. This will help provide mortgage refinance opportunities to millions of Americans with adjustable rate mortgages. Also, the details of President Bush’s plans to provide respite to some homeowners are yet to be fully scrutinized. All in all, any action by the Fed and President Bush are better than any inaction to salvage the economy and certain home loan borrowers who were targets of irresponsible mortgage lenders. 


 

PersonalHomeLoanMortgages.com is the leading online mortgage and home loan supersite. Our full time dedicated staff strives to help you through the mortgage process. Browse our expert articles, useful mortgage calculators, and comprehensive mortgage broker directory to ease your mortgage refinancing and mortgage rate needs. Simply fill out a quick application to connect with one of our quality lenders and receive a free quote. It’s never too late to save thousands so borrow intelligently!

 
 
 

 
 

Search By State

Top Mortgage Markets

 
 



equal housing opportunity
Copyright 2007 PersonalHomeLoanMortgages.com. All Rights Reserved.