On Sunday, September 7th, the U.S. Treasury announced they would take control over Fannie Mae and Freddie Mac in order to try and stabilize the housing market and avoid a financial market crisis.  Officials said they would put both Fannie Mae and Freddie Mac in a government conservatorship, replace their chief executives, and invest up to $100 billion in each of the two companies.

So, what exactly will this do?

Some experts say this will stabilize the market, allow increased funds for borrowers with good credit, lower interest rates, and allow homeowners to refinance into lower rate long term loans.

Other experts say this does not benefit homeowners who are struggling currently with their mortgage payments who owe more than their home is worth.  This takeover will not have any impact on jumbo mortgage rates, home-equity loans, or lines of credit because they are not directly impacted by Freddie Mac or Fannie Mae.  It also could potentially end up costing taxpayers tens of billions of dollars as they now assume the risk for the companies' losses.

What do you think about the Treasury takeover, and how long do you think it will be until we see a turn around in the housing industry?