The Treasury has lifted the $400 billion cap on the financial lifelines available to Fannie Mae and Freddie Mac as part of their conservatorship. Treasury officials say they will inject as much money "as necessary" into the GSEs over the next three years to ensure the companies maintain a positive net worth. The pledge of unlimited support has prompted speculation that the move is intended to cover changes to the Home Affordable Modification Program (HAMP), which could include principal writedowns for troubled borrowers.
On Monday, Grubb & Ellis a real estate services and investment firm headquartered in Santa Ana, California, released its 2010 Real Estate Forecast. According to the report, the 2010 commercial real estate fundamentals are projected to decline at a slower pace than in 2009, and most property types are forecast to reach bottom near the end of the year and begin a slow recovery in 2011.
The Treasury has agreed to shell out another $3.79 billion to GMAC Financial Services as part of a third bailout transaction that will give the government a 56 percent ownership stake in the company. The latest round of aid is on top of $12.5 billion GMAC has already received from the Troubled Asset Relief Program (TARP) - $5 billion last December and $7.5 billion in May.
Record-low mortgage interest rates have provided a boost to the housing sector's gradual recovery, but they're on the rise. Rates for 30-year fixed mortgages ended 2009 above the 5 percent threshold. While this may signal a trend of higher rates as we head into the new year, new data from Wells, Chase, and the Mortgage Bankers Association shows that more borrowers are refinancing into 15-year loans to pay off their debt faster.
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