So I recently heard this news and it would be an understatement to say that I was shocked. After all the financial conundrum the country is going in, it was surprising to hear that the Fannie Mae has made it easy on the credit so that it can further stretch the Mortgage lending sheet.
So even if this is a temporary move, it has significantly raised the risk for already embattled company. Although this strategy may not have posed any enormous risk during good times, but given the current climate, it does raises concerns in the minds of many economists.
Peter Wallison had this to say about the tactic by Fannie Mae – ‘From the perspective of many people, including me, this is another thrift industry growing up around us.
I happen to totally agree with you Mr Wallison, Fannie Eases Credit To Aid Mortgage Lending is not intended to bring a cheer in those who are looking at the whole emerging sacrosanct picture.
For comprehanesive details, check out this great article on Fannie Mae Eases Credit to aid Mortgage Lending.