Why The Government’s Takeover Of Fannie Mae and Freddie Mac Is Lowering Mortgage Rates

When comparing two investments with equal risk, a rational person will choose the investment with a higher rate of return.This behavior is called  Risk Aversion and is a basic tenet of personal investing. An off-shoot of Risk Aversion is that a rational person will only invest in an instrument of greater  risk if the returns [...]

James Lockhart: Plans for Fannie Mae and Freddie Mac

                                              Statement by James Lockhart, director of the Office Of Federal Housing Oversight(OFHEO, who will head the Federal Housing Finance Agency (FHFA) being created to oversee mortgage bankers Fannie Mae and Freddie Mac.
Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) share the critical mission of providing stability and liquidity to the housing market. [...]