This Week’s Mortgage and Financial News

It’s been quite a week. Financial stocks were in the spotlight on Wall Street over fears that Fannie Mae and Freddie Mac could be in trouble, and whether the government will step in and take control if troubles continue. Stocks for the two mortgage giants met their lowest lows in 15 years this week.

The government is looking at what it could and/or should do if Fannie and Freddie are so pressed that they cannot raise capital to continue operating.

This week brought more job cuts in the financial arena when Indie Mac announced that it would stop taking loan applicatioins and slash it’s workforce from the current 7,200 to around 3,400 jobs.

Fed Chair Ben Bernanke announced a list of sweeping measures, which would help to shore up mortgage lending and help markets run more smoothly. They could extend the feds role in lending to the nation’s largest investment banks and enhance central bank authority over key aspects of the financial system.

National Association of Realtor’s Pending Home sales Index showed an almost 5% drop in home sales for may.

That does it for this week’s wrap up.

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