The Real Deal Miami

New Fannie, Freddie lending measures may not be enough

July 08, 2009 03:48PM

Recent changes to lending guidelines from Fannie Mae and Freddie Mac will help move the market off the bottom, but those measures may not be enough. The government-run mortgage companies said last week they will refinance existing mortgages with loan-to-value ratios up to 125 percent, a move Louis Spagnuolo of WCS Lending in Boca Raton said is a step in the right direction. But with so many Florida mortgages under water, many market experts are convinced only radical loan modifications will solve the crisis.