On the 19th of October the Obama administration announced the use of a new program made available to support local and state finance agencies.
This program will assist those local and state agencies by helping them finance mortgages for first-time home buyers.
Many of these state and local agencies have had difficulty raising funds to assist with morgages because of the nation’s housing crisis and credit crunch.
This past year, these agencies have only been able to obtain about a quarter of the funds that they usually gain through the sale of tax-exempt bonds ($4 billion).
Because of the large reduction of funds made available to these agencies, the number of morgage loans for first-time home builders have been limited.
This program that was just recently unveiled uses the morgage finance giants Fannie Mae and Freddie Mac to aid in the repair of the financing crunch.
This is accomplished by Fannie Mae and Freddie Mac packaging mortgages put together by state and local agencies and selling those mortgage packages as bonds to the United States Treasury Department.
See more:
$8k Tax Credit for First Time Home Buyers
Fannie Mae to Allow Borrowers in Foreclosure to Lease Back Homes
Loan Modification Reporting Changes
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