eye-3-yellow-3d-2-new-logo philly_kyw_new philly_94wip_new 35h_cbssportsrad_philly philly_wpht_new

Local

Banking Expert: New Rules May Free Up More Money For Mortgage Lending

View Comments
(Photo by Joe Raedle/Getty Images)

(Photo by Joe Raedle/Getty Images)

Michelle Durham Michelle Durham
She's reported from inside a burning building, from the flight deck of...
Read More

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

By Michelle Durham

PHILADELPHIA (CBS) - A new policy announced by Fannie Mae and Freddie Mac, the two government controlled entities that underwrite millions of American mortgages, may be good news for those seeking a new mortgage as well as the banking institutions issuing them. The new rules could potentially make more money available for those looking to buy a home.

John Giordano, CEO of First Heritage Financial, says he’s seen a shift in the past year from a refinance market to a purchase market.

“We have seen both with both very large lenders and smaller lenders a 70-percent differential in closed home production,” he said. “That is very good news.”

What does this mean for prospective homebuyers?

“I think there a lot of people who would look at this marketplace as a time to buy.”

What does this mean for lenders?

“From an administrative point of view, using these guidelines, we will be able to pre-approve and approve more loans.”

A vote this week is scheduled in the Senate on legislation to potentially phase out Fannie and Freddie. Giordano says they are waiting to see what happens.

 

Top Content On CBSPhilly

View Comments
Follow

Get every new post delivered to your Inbox.

Join 31,893 other followers