View more on these topics

Credit Crunch End Game

Leaving aside thoughts of particle accelerators and the world ending,
the US government have made what could prove to be a historically
significant move by taking “Freddie Mac and Fannie Mae” under their wing.

With a massive 9% of all US homeowners reportedly behind in their
mortgage payments, the threat of these two mortgage giants, Freddie Mac
and Fannie Mae, actually going bankrupt and effectively bringing the
whole market to a crashing halt has prompted the move.

It is hard to underestimate the significance of such a move, which has
sent a wave of re-assurance throughout world markets and seen shares
rally, especially in banking stocks.

Graham Neale of Killick & Co. says: “The markets are certainly
going to rally today because investors are going to say ‘Maybe we can
see light at the end of the tunnel in terms of the credit crunch'”.

And Cobalt’s very own city expert Rob Gill says: “A year and one
month after European Central Bank action called the start of the credit crunch, this US
Treasury intervention could be the moment that’s ultimately seen as its

It will be interesting to watch the next moves in this topsy-turvy
market and we are all holding our breath to see if this does truly
become the endgame everyone has been hoping for.


Trade bodies seek members

RAMP and AMPD will battle for members after plans to form a unified alliance were scrapped.John Rice, managing director of the Regulatory Alliance of Mortgage Packagers, has shelved plans for a single association and will instead focus on growing RAMP’s membership from 10 to 15 packagers.Rice says: “Nobody is immune to the changes taking place […]

Halifax sees 1.8% fall in house prices

Halifax has reported a 1.8% fall in house prices from July to August 2008, taking the average house price down to £174,000, a fall of 10.9% from last year.

Harpenden chairman retires

Roger Smith, chairman of Harpenden has retired, with vice chairman Michael Willis taking his place at the mutual.

Just joins AMPD

Just Mortgage Packaging has joined the Association of Mortgage Packagers and Distributors.


News and expert analysis straight to your inbox

Sign up