Fannie Mae and Freddie Mac Ain't Helping!

 On August 9, 2008 the Associated Press reported: Fannie Mae Cutbacks Chill Mortgage Market!  Right now Fannie Mae is making bold cutbacks that according to the Associated Press will send shock waves through the mortgage market, especially after posting a quarterly loss Friday that was three times larger than Wall Street expected.
     To slow it's financial decline, Fannie Mae slashed its dividend to 5 cents a share from 35 cents a share and said it will eliminate loans for borrowers with solid credit scores, but little proof of income - or small or no down payments.  Fannie Mae is also raising fees that will passed along to borrowers as higher interest rates or closing points.
     The fear is that mortgage rates will keep climbing, making it harder for people to afford a mortgage or refinance their homes, and spur more foreclosures.  

      So, has any of this affected Marin County? On August 8, 2008 the Marin Independent Journal reported that Redwood Trust of Mill Valley shares slide 14 percent amid report of $46 million dollar loss in the second quarter.  Martin Hughes, Redwood's founder and chief financial officer said, "I can tell you we're not in a panic here.  We're sitting with a lot of cash.  We just put a bunch of money to work this quarter." 
Redwood Trust Article From the Marin Independent Journal
     Today the Marin Independent Journal reported that three banking institutions here in Marin County see stellar earnings this year  - for the whole story:  Marin's Banks Strong Despite National Slump
     Joan Thayer, the Marin County Assessor-Recorder noted that, "Marin, so far, has remained relatively, but not totally, unaffected by the housing crisis.  The reason for Marin's comparative good fortune is the lack of new development projects, limited new construction, and its continuing allure as one of the most desirable areas in the country in which to live.  Demand is high and the supply is limited.  Nevertheless, there are indicators the economic downturn has impacted this county and will continue to do so in the months ahead.   Since January 2007, we have experienced a significant slowdown in the number of real property sales in all categories: single family residences, multi-family, and commerical properties."
     Recently on the evening news a video clip of President Bush caught off camera talking about the economy after a news conference had the President accusing Wall Street of "getting drunk" and then asked, "when are they going to sober up?"  Did someone forget to tell the President he was the bartender?  Oh well...
     If you have a moment check out my Marin History web site with the Marin Independent Journal at: Marin History

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