Does This Mean The Government Will Own Your Mortgage?
An associated press article published Tuesday details the nation’s economic woes. Among them was the Fed’s offer to step in and grant financial help to the two largest mortgage companies in America.
From the article (I bolded the parts that really caught my attention):
Bernanke’s testimony comes just two days after the Fed and the Treasury Department came to the rescue of mortgage giants Fannie Mae and Freddie Mac, offering to throw them a financial lifeline.
The Fed chief was later joined by Treasury Secretary Henry Paulson and Securities and Exchange Commission Chairman Chris Cox, who were summoned to detail the rescue plan.
The two companies hold or guarantee more than $5 trillion in mortgages — almost half of the nation’s total. The Bush administration is asking Congress to temporarily increase lines of credit to Fannie and Freddie and to let the government buy their stock. The Fed has offered to let the companies draw emergency loans.
