About Erica

Erica has practiced law in the greater Chicago area for almost 30 years. Her expertise spans the spectrum of distressed property issues, short sale transactions and counseling her clients in re-establishing their credit and becoming debt free and mortgage free.

A leader in North Shore real estate, Erica is also an invested member of the community. Her memberships include Founder and President of the Association of Foreclosure Defense Attorneys, Director – North Suburban Bar Association, President of the Skokie Chamber of Commerce, and Past President of Rotary Club of Chicago Far North, Member – North Shore Law.

Erica is also a resource for those interested in learning the most effective ways to manage debt and handle and become more knowledgeable in real estate matters. Her “Debt Management Solutions” blog and E-Newsletter have become valuable resources for individuals searching for knowledgeable, accessible advice from an expert in the field.

Fannie & Freddie Downgraded to AA+ by S&P: What Does It Mean for the Housing Market?

Citing weak political will to deal with long term national debt, Standard and Poor made a historic decision on Friday to downgrade the U.S. government’s credit rating from their highest AAA status to AA+. It’s a shocking but not unexpected move that is shaking stock markets across the globe and causing one heck of a debate among the media, economic analysts, the Obama administration, and investors.

On the heels of this announcement, S&P also relatedly downgraded mega housing lenders Freddie Mac and Fannie Mae, who, in the wake of the 2008 bailout, are both now owned and controlled by Uncle Sam. In a certain sense, there’s no doubt this downgrade is a big deal and there is a real potential impact on mortgage rates. Rates are tied to investors’ desire to purchase mortgage bonds, which have been historically very appealing because they’re guaranteed by Fannie Mae and Freddie Mac (the U.S. government). If this guarantee becomes less of a guarantee, it could theoretically lead to investors demanding higher interest rates on these bonds, thus raising borrowing rates for home buyers. But as of now, that hasn’t been the case.
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