Will unlimited Fannie and Freddie bailouts prop up housing?

New York /
Dec.December 29, 2009 04:13 PM


On Christmas Eve, the government announced it would uncap the amount of bailout money allotted for Fannie Mae and Freddie Mac, giving the two mortgage giants any amount they need over the next three years. This week, in a Wall Street segment, financial journalists debated whether the move was a sign that the government is getting ready to prop up the housing market once again. “They don’t necessarily need the money, but the Treasury will lose its power to unilaterally give money to them at the end of next year,” said Nick Timiraos, a Wall Street Journal reporter. By increasing the amount of money given to Fannie Mae and Freddie Mac, the government hopes to increase the amount of aggressive writedowns on mortgages and improve the Home Affordable Modification Program, according to MarketWatch reporter Alistair Barr. “Since many people see their net worth as the value of their home, stability in housing is key even if we see a second dip in prices,” said Mike Reid, Dow Jones Newswires deputy managing editor. “The unlimited allocation to Fannie and Freddie will certainly prop up the housing market,” added Barr.


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Mayor Bill de Blasio (Getty, iStock)
NYC talked about converting hotels into affordable housing. Nothing’s happened yet
NYC talked about converting hotels into affordable housing. Nothing’s happened yet
President Joe Biden (Getty, iStock)
Biden’s broadband bucks could wire all of NY’s affordable housing
Biden’s broadband bucks could wire all of NY’s affordable housing
Enterprise President and CEO Priscilla Almodovar (Getty)
Enterprise closes low-income housing funds after raising $365M
Enterprise closes low-income housing funds after raising $365M
Camber Property Group's Andrew Moelis and Rick Gropper with 2060 Pitkin Avenue in Brooklyn and 1971 and 1975 Grand Avenue in the Bronx (Photos via Camber Property Group, Omni New York)
Affordable housing developer Camber scoops up Section 8 portfolio
Affordable housing developer Camber scoops up Section 8 portfolio
33 Eastville Ave, Sag Harbor, NY (Google Maps)
East Hampton pursues affordable housing dev for former Baptist church
East Hampton pursues affordable housing dev for former Baptist church
Tishman Speyer president Rob Speyer and Edgemere Commons (Getty)
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...