Ever since the announcement that Fannie Mae and Freddie Mac would be taken over by the government, the theories about ramifications have been flying. Obviously, it will affect the shareholders much sooner than it will affect anyone else. In theory, the takeover is supposed to save them…but it’s also supposed to save the entire mortgage industry (some will say the entire American economy). The original goal of Fannie Mae (started in 1938 and publicly traded in 1968) was to help the mortgage industry during tough economic times. Freddie Mac started in 1970 to provide a competitor so that one company didn’t have a monopoly on government-backed loans. The government takeover is to ensure that they can both continue in this endeavor but still provide a solid investment for their shareholders. In theory. Some economists warn that the takeover is just a temporary fix—like drinking more coffee to stay awake. Others say this is exactly what is needed—temporary relief to help the market stabilize. Since no one can predict the future, that coin could fall either way. The takeover is designed to allow the mortgage rates to drop further. This will hopefully spur the industry while lending institutions follow more strict lending practices so that the loans are more secure. Hence, they can continue to grow, the real estate industry will stabilize, and eventually the government can withdraw control. Will it happen this way? Again, only time will tell, and some are saying it will be several months before the world sees any real indication of how things will play out.

The MaP Collection Phase 1 Spring 2009, Pre Construction Offering Not on The Market. Wide Expansive 4 bdrm 4 1/2 Row Homes 3564 sqft- 4176 sqft, Spectacular Finishes, In-House Design Team Services. Intimate Neighborhood Setting, 5 minutes to Downtown.

Some recent moves by the federal government might have boosted the Chicago real estate industry. They’ve opened the door just a little wider for Chicago borrowers by raising the limits on FHA loans. The expansion is by 125% from last year, bringing it to $317,000.

Logan Square is one of Chicago’s most unique architectural showpieces. But the story of how it became a community is every bit as remarkable as the community itself…and the history gives insight into the amazing structures seen there now