Local lender says federal bail out an indication of more hands-on governing of the industry.
The buzz about a federal bailout of mortgage giants Fannie Mae and Freddie Mac is an issue of no concern to Santa Clarita mortgage holders, according to a lender in the know. Mike Meena, president of Augusta Financial in Newhall, reassured borrowers that the end is not, as some have predicted, near.
“I think it’s going to mean a lot of nothing,” Meena said. “I don’t think the federal government is going to allow Fannie Mae or Freddie Mac to go under. They’re the only lender left and they’ve taken on every type of loan in the world to do this.
“The government is obviously making the business of doing loans a lot tougher; they’re making it tougher on individuals to buy, but they won’t close down Fannie Mae or Freddie Mac. They’re not going anywhere.”
Meena said that the lending industry is undergoing some big changes because of the financial climate.
“The Fed did the bailout last week and I think you’ll continue to see money go into that,” he continued. “They also came out saying they want to ban risky loans and there’s other kinds of loans they don’t want us to do, so it sounds like we’re going to have a little more government intervention in our industry, but I don’t think it’s going to affect the general public.”
Fannie Mae (actual name: Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are stockholder-owned corporations established by Congress as secondary lenders to support the nation’s residential mortgage markets. They raise capital on Wall Street and other markets around the world to finance mortgages for families across America.