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Article: What the Freddie-Fannie takeover means to San Diegans: two paths to recovery when markets stabilize.(REAL ESTATE)(Federal National Mortgage Association)(Federal Home Loan Mortgage Corp.)
- Article from:
- San Diego Business Journal
- Article date:
- September 15, 2008
- Author:
CopyrightCOPYRIGHT 2008 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Last week's government takeover of the mortgage lending giants Freddie Mac and Fannie Mae matter more to the San Diego region and all of urban, coastal California than to other less dynamic regions.
These entities, which are invested in or guarantee roughly three-quarters of our nation's mortgages, are the buyers of first trust deeds--consumer home loans--functioning in their role as "secondary market" financiers.
As such, their function is to funnel capital back to the primary lenders, thus providing liquidity for more lending.
They provide the financial fuel to lenders, and lower the cost of mortgage credit.
Their existence and ...