March 16, 2008

Fed's Actions May Or May Not Aid Mortgage Borrowers

By Marcie Geffner (Bankrate.com)
Last week was a busy one at the Federal Reserve. The central bank's efforts to improve the flow of money through the nation's gridlocked financial system should help large banks and investment companies, but any immediate benefits for homeowners and homebuyers are far less likely, according to Jeff DerGurahian, senior vice president of capital markets at Metrocities Mortgage in Sherman Oaks, Calif.
"This (action by the Fed) is really more just to help primary dealers and their larger clients work their way through the liquidity crisis that we are in right now," he says. "It does not have that much effect for homebuyers."
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