Change is in the air with Congress working on restructuring the failing Freddie Mac and Fannie Mae. Mortgage bankers are suggesting creating a "good bank" and a "bad bank" and getting rid of both of these institutions. The good bank would deal with the profitable mortgage loans and the bad bank would deal with work outs on bad loans and resolutions for people in trouble.

What does this mean to home buyers if the reorganization happens? It could mean that the government would guarantee the regular conventional fixed rate plain vanilla loans.

The loans that are not mainstream such as Jumbo loans or other non conforming loans may not get serviced through the reorganization. The National Association of Realtors is trying to lobby to get these nonconforming loans serviced. Although Freddie and Fannie are staying the same right now, look for changes by some time next year.