REMI Releases Reader Tip and Ruminates on Fannie Mae and Freddie Mac Changes

Tobias Nergarden releases his reader tip and comments on reports that the Federal Government will not relinquish control of Fannie Mae and Freddie Mac.

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La Jolla, CA (PRWEB) August 20, 2012

REMI released a reader tip today on alternatives to traditional vacation boarding. The online real estate resource stated, “When trying to get away with the family, a partner, or just alone try and rent from owners or property management companies that have beachfront home rentals rather than a hotel.” REMI explained that vacationing in a home rather than a hotel can provide for a more personal, private experience.

Mr. Nergarden also announced his opinion of the news on Bloomberg.com that Fannie Mae and Freddie Mac will not again become private companies due to the efforts of the Treasury Department, and his opinion is that this will help home prices and real estate marketing services because it makes sure that the government will be behind a large portion of home loans which may encourage lenders to help sellers sell quickly.

The U.S. Treasury Department has revised the terms of the financial bailouts of Fannie Mae and Freddie Mac, the two biggest mortgage lenders, to make sure that they will remain under government conservatorship. This means that each company will not be able to keep any profits, instead funneling them to the Treasury. Some feel that both companies will eventually disappear, but as of now, the future has not been established. Treasury secretary Timothy Geithner has stated that this might be clarified later in 2012.

The United States Department of the Treasury was created in order to manage government revenues. The head of the department is a member of the Cabinet and is appointed by the U.S. President. Along with collecting taxes with the Internal Revenue Service, the Treasury Department also prints money and mints coins. The U.S. Federal Reserve, which oversees banking within the United States is commonly associated with the Treasury Department, but is a distinct organization.

Fannie Mae is a nickname for the Federal National Mortgage Association. After the financial crisis of 2008, Fannie Mae was one of the corporations saved by a government bailout that cost taxpayers billions of dollars. Before that, it had a long history of involvement with the mortgage industry, and was founded during the later years of the Great Depression as part of a New Deal program.

The Federal Home Loan Mortgage Corporation is more commonly known as Freddie Mac. This is a government sponsored corporation that was created in 1970 as a means to create more secondary options for mortgages. A government bailout was required to salvage Freddie Mac after it was highly involved in the mortgage crisis and the financial crisis of 2008.

Timothy Geithner was picked by President Barack Obama to run the Treasury Department from his job as the president of the New York Federal Reserve. Geithner was highly criticized during his confirmation hearings because it turned out that he had not paid self-employment taxes during a four year period prior to his nomination. Regardless, his nomination was confirmed and he has served since.

Real Estate Marketing Insider today provide its readers with a vacation tip and commented on the news that the Treasury department has made it nearly impossible for Fannie Mae and Freddie Mac to regain their status as private companies, making it likely that they will eventually disappear.

About Real Estate Marketing Insider:
Real Estate Marketing Insider is a publication aimed at providing real estate professionals everywhere with tips, strategies, and analysis of market trends. REMI is based out of La Jolla, California.


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