Published: September 10, 2008

Freddie Mac/Fannie Mae Take-Over Will Lead to Active Prime Market

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Newswise - "The immediate impact of the government bailout of Fannie and Freddie will drop the mortgage rates since it will reduce the uncertainty in the market," says Yildiray Yildirim, associate professor of finance in the Whitman School of Management at Syracuse University. "This maneuver will increase the availability of financing in the prime market with good credit and help the real estate companies reduce their inventory particularly for medium to high income family houses."

Yildirim does not see similar activity in the subprime market. "I don't think subprime borrowers will be buying a house in this market," he says.

Yildiray Yildirim, associate professor of finance, researches mathematical finance on modeling the term structure of interest rates, credit risk (theoretical and empirical), real estate finance- prepayment modeling, and valuation, corporate finance, and applied probability. He has been published in leading finance and real estate journals, including Journal of Financial and Quantitative Analysis, Journal of Fixed Income, Journal of Derivatives, The Journal of Real Estate Finance and Economics, Real Estate Economics, and Annals of Applied Probability, among others.

Source: Whitman School at Syracuse University