Government is Making it Simple to Find a New Mortgage

US Treasury-Lower Mortgage Rates

Treasury Secretary Paulson exercised his 'bazooka' option to take over the two giant mortgage institutions, Fannie Mae and Freddie Mac, owning or guaranteeing well over half of American's $12 trillion in mortgages. This move in a matter of days sent fixed mortgage rates into the low 6 percent range, destine to break into the 5 percent rang by weeks end.

Paulson's statements outline availability of affordable mortgage financing as one of the Treasury's three critical objectives in the Fannie, Freddie take over.

This is good news for borrowers. Traditional Fannie, Freddie acquisition fees and risk-based pricing are slated to be stripped from these programs. Now accounting for nearly 70 percent of mortgage financing, your chances of getting a cheap mortgage just went up.

FDIC-Streamline Loan Modifications

Meanwhile, the FDIC Chair Sheila Bair is advocating streamlining loan modifications. These programs would adjust mortgages for those struggling to make monthly payments and can document hardship.

This exact strategy is currently being tested at IndyMac Bank, recently taken into conservatorship by the FDIC. The FDIC is systematically seeking borrowers in their mortgage portfolio that qualify for this assistance to prevent increasing payment defaults and foreclosures.

Bush Administration-FHA Modernization

The White House is also on the war path to battle mortgage crisis by helping homeowners. Significantly expanding the credit and loan amount qualifications guidelines of FHA and HUD loan programs. The recent housing bill powered the surge for FHA to regain market share in the mortgage insurer market--making it easier for mortgage lenders to say, "yes" to more home buyers and homeowners looking for refinance assistance.

The stated goal of these programs in the recent Housing and Economic Recovery Act is to slow the foreclosures entering into the housing inventories and bring stability to housing prices. New home buyers and existing home mortgage holders are going to find opportunities in these reforms when they take effect the first of October.

McCain/Palin-Fix Fannie, Freddie and Privatize Again

Even the Presidential candidates are getting into the act. McCain's campaign sees the benefit of nationalizing the large mortgage institutions in the short-term, advocating the affordability it brings to mortgages. However, consistent with the current Paulson plan, he sees the institutions being broken up into more manageable entities and spun back out into the private sector.

The advantage to this plan being the short-term liquidity solution, but long-term removing the enormous taxpayer liability back off the government balance sheet--for the same reasons Fannie and Freddie were spun out originally.

Obama/Biden-Fix Fannie, Freddie and Keep Them Public

Obama's camp holds the same endorsement of the take-over and recovery plan. However, departs from the Republican plan in seeing a more permanent Federal structure for managing mortgage financing.

Obama assures tax hawks that his economic recovery platform absorbs this large Federal funding responsibility without additional taxpayer liability.

Bottom line on all fronts--mortgage borrowers hold all the cards and everyone is rolling out the welcome wagon to get you in or keep you in the American Dream.

Where is that mortgage broker's number???