Nov 03

Introducing Fannie Mae’s Instant Underwater Mortgage – 3% Down, No Cash Needed

FHFA Head Warns Fannie Mae and Freddie Mac May Need a Capital Injection from the U.S. Treasury

Tags: , , , ,

Jul 23

Fannie-Freddie-Taxpayer

New York Times Reports – “Fannie and Freddie are Back, Bigger and Badder Than Ever” (Liberty Blitzkrieg, July 22, 2015):

Just in case you still harbored any doubt that absolutely zero lessons were learned from the cataclysmic financial collapse of 2008/09. We learn from the New York Times that:

AFTER the financial crisis of 2008, there was one thing that almost everyone agreed on. The government-sponsored mortgage giants, Fannie Mae and Freddie Mac, had to go. While shareholders and executives reaped the profits from Fannie and Freddie in good times, taxpayers were stuck with the bill in a crisis. President Obama described their dysfunctional business model as “Heads we win, tails you lose.” But here we are, seven years after the crisis, and nothing has changed. Continue reading »

Tags: , , , , , ,

Jun 16

Fannie Mae Is At It Again: Loan-To-Value Ratio Now Higher Than During Housing Bubble (ZeroHedge, June 16, 2015)

Tags: , ,

Mar 21

fanniemacbig


Government Hints Fannie/Freddie Would Need Another Bailout If Conditions Deteriorate (ZeroHedge, March 19, 2015):

FHFA finds that the GSEs might well need billions more in taxpayer dollars in the event of a downturn, suggesting the deck may be stakced against those the companies’ common. 

Tags: , , , , , ,

Dec 09

Wait What

If At First You Fail Miserably & Blow Up The Financial System, Do It Again! (ZeroHedge, Dec 9, 2014):

Here we go again! Mortgage giants Fannie Mae and Freddie Mac have now officially approved 3% down payment mortgages. Having government entities provide low down payment mortgages to people who can’t afford to buy a house is always a good move. Keynesians like Krugman approve wholeheartedly. The housing market will get a nice boost and the working taxpayers will fund the bad debt through Fannie and Freddie. You own Fannie and Freddie. Everyone wins. In case you forgot, the closing costs to sell a house are usually 8% of the home price. So these home buyers are immediately 5% underwater when they move in… “Sometimes I can’t believe I live in a world this f##ked up. And no one notices and no one cares.”

Tags: , , , , ,

Oct 19

Mel Watt, Federal Housing Finance Agency Head, is Pushing Banks to Make Extremely Risky Home Loans (Liberty Blitzkrieg, Oct 16, 2014):

Mel Watt is one of the most dangerous financial oligarch puppets operating in America today. The first time he came across my radar screen was back in 2009, when he “gutted” Ron Paul’s End the Fed bill while it was in subcommittee, something I outlined in the post: Leverage in PE Deals Soars Despite Fed Warnings; Amidst Insatiable Demand for Risky Fannie Mae Debt. Continue reading »

Tags: , , , , , , , , , , , ,

Jan 25

Bank Of America Caught Frontrunning Clients (ZeroHedge, Jan 25, 2014):

Every time a TBTF bank releases its 10-Q, we head straight for the section, usually well over 100 pages in, that discloses the bank’s total profitable trading days.

This is what the most recent Bank of America 10-Q said on this topic:

The histogram below is a graphic depiction of trading volatility and illustrates the daily level of trading-related revenue for the three months ended September 30, 2013 compared to the three months ended June 30, 2013 and March 31, 2013. During the three months ended September 30, 2013, positive trading-related revenue was recorded for 97 percent, or 62 trading days, of which 69 percent (44 days) were daily trading gains of over $25 million and the largest loss was $21 million. These results can be compared to the three months ended June 30, 2013, where positive trading-related revenue was recorded for 89 percent, or 57 trading days, of which 67 percent (43 days) were daily trading gains of over $25 million and the largest loss was $54 million. During the three months ended March 31, 2013, positive trading-related revenue was recorded for 100 percent, or 60 trading days, of which 97 percent (58 days) were daily trading gains over $25 million. Continue reading »

Tags: , , , , , , , , , , , ,

Oct 24

US Gov’t Takes Bank Of America To Court And Wins, Jury Finds Countrywide Liable For Fraud (Forbes, Oct 23, 2013):

Thought those mortgage lawsuits against banks were winding down? Think again.

Today a jury found Bank of America liable for defrauding Fannie Mae and Freddie Mac when its Countrywide unit sold it bad mortgages.

The jury also found former Countrywide executive, Rebecca Mairone, liable on the one fraud charge facing her, Reuters reports.

The verdict is a win for the US government as this is one of the few cases stemming from the financial crisis that it’s taken to trial.

“In a rush to feed at the trough of easy mortgage money on the eve of the financial crisis, Bank of America purchased Countrywide, thinking it had gobbled up a cash cow.  That profit, however, was built on fraud, as the jury unanimously found,” US Attorney Preet Bharara said in a statement.

The U.S. Department of Justice is looking to get a $848 million out of BofA.

Continue reading »

Tags: , , , , , , ,

Feb 07

ALL IS WELL!!! (The Burning Platform, Feb 6, 2013)

Tags: , , , , , , , , , , , , , , , , , ,

Jan 07

10 banks agree to pay $8.5B for foreclosure abuse (AP, Jan 7, 2013):

WASHINGTON — Ten major banks agreed Monday to pay $8.5 billion to settle federal complaints that they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.

The banks, which include JPMorgan Chase, Bank of America and Wells Fargo, will pay billions to homeowners to end a review process of foreclosure files that was required under a 2011 enforcement action. The review was ordered because banks mishandled people’s paperwork and skipped required steps in the foreclosure process.

The settlement was announced jointly by the Office of the Comptroller of the Currency and the Federal Reserve.

Separately, Bank of America agreed Monday to pay $11.6 billion to government-backed mortgage financier Fannie Mae to settle claims related to mortgages that soured during the housing crash.

Continue reading »

Tags: , , , , , , , , ,

Dec 15


YouTube

Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Dec 14

Marc Faber: “Paul Krugman Should Go And Live In North Korea” (ZeroHedge, Dec 13, 2012):

If there is one thing better than Marc Faber providing a free, must-watch (and listen) 50 minute lecture on virtually everything that has transpired in the end days of modern capitalism, starting with who caused it, adjustable rate mortgages, leverage, why did the Fed let Lehman fail, why was AIG bailed out, quantitative easing, Operation Twist, where the interest on the debt is going, which bubbles he is most concerned about, a discussion of gold and silver, and culminating with his views on a world reserve currency, is him saying the following: “The views of the Keynesians like Mr. Krugman is that the fiscal deficits are far too small. One of the problems of the crisis is that it was caused by government intervention with fiscal and monetary measures. Now they tells us we didn’t intervene enough. If they really believe that they should go and live in North Korea where you have a communist system. There the government intervenes into every aspect of the economy. And look at the economic performance of North Korea.” Priceless.

50 minutes of Faberian bliss:


YouTube

Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

Aug 18

US Treasury Admits It Conducted A Circular Ponzi Scheme For Years (ZeroHedge, Aug 17, 2012):

While one may wonder about the implications of the just announced “accelerated windown” of the GSEs, predicated in no small part by the surge in animosity between Tim Geithner and the FHFA’s Ed DeMarco, there is one aspect of the announcement that is completely and utterly unambigious: as part of its justification to demand faster liquidation of Fannie and Freddie’s “investment portfolio” Tim Geithner gave the following argument:

This will help achieve several important objectives, including… Ending the circular practice of the Treasury advancing funds to the GSEs simply to pay dividends back to Treasury

In other words not some fringe blog, not some “partisan” media outlet, not some morally conflicted whistleblowing former employee seeking immunity, but the US Trasury itself just admitted it had been engaged in circular check kiting scheme, which essentially has all the components of a Ponzi scheme in it, ever since the nationalization (about which there is no now doubt and which means the GSE’s $6 trillion in debt is now fully on the Treasury’s balance sheet) of Fannie and Freddie in 2008.

Transfer one more conspiracy theory into the conspiracy fact bin.

Tags: , , , , , ,

Jul 27


YouTube Added: 13.06.2012

Tags: , , , , , , , , , , , , , , , , , , ,

Jun 04


YouTube Added: 28.05.2012

Tags: , , , , , , , , , , , , , , , , , , , , ,

Dec 14


YouTube Added: 22.11.2011

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Nov 19

The article below is from Oct. 21. This is from CNN Money, Nov. 15:

Fannie & Freddie Executives Score $100 Million Payday (Which Is Essentially Taxpayers Money – Fannie Mae Asked For Another $7.8 BILLION Of Taxpayers Money To Cover Its Losses In Third Quarter)


Fannie, Freddie Need More Money (FOX Business/Reuters, Oct. 21, 2011):

Fannie Mae and Freddie Mac may need as much as $215 billion in additional capital from the Treasury through 2013 to offset losses and maintain a positive net worth, their federal regulator said on Thursday.

Fannie Mae and Freddie Mac, whose programs fund the lion’s share of all new home loans, are at the center of debate as Congress sets to overhaul a U.S. mortgage finance system that contributed to the worst housing crisis since the 1930s.

The cumulative capital needs of the two housing finance giants, which were seized by the government in late 2008, will likely fall between $221 billion and $363 billion through 2013, the Federal Housing Finance Agency estimated.

Continue reading »

Tags: , , , , , , , , ,

Nov 16

See also:

Black Hole Fannie Mae Asks Taxpayers For Another $7.8 BILLION To Cover Its Losses In Third Quarter:

WASHINGTON (AP) — Mortgage giant Fannie Mae is asking the federal government for $7.8 billion in aid to cover its losses in the July-September quarter.


Fannie, Freddie execs score $100 million payday (CNN Money, Nov. 15, 2011):

NEW YORK — Mortgage finance giants Fannie Mae and Freddie Mac received the biggest federal bailout of the financial crisis. And nearly $100 million of those tax dollars went to lucrative pay packages for top executives, filings show.

The top five executives at Fannie Mae received $33.3 million in 2009 and 2010, while the top five at Freddie Mac received $28.1 million. And each company has set pay targets of as much as $17 million for its top managers for 2011.

That’s a total of $95.4 million, which will essentially be coming from taxpayers, who have been keeping the mortgage finance giants alive with regular quarterly cash infusions since the Federal Home Finance Agency (FHFA) took control of the companies in September 2008.

Fannie CEO Michael Williams and Freddie CEO Charles Halderman, each received about $5.5 million in pay for last year, and they could receive more when their final deferred compensation for 2010 is set. All the executives receive a significant portion of their pay in the year or years after they earn it.

Continue reading »

Tags: , , , , , , , , ,

Nov 11


YouTube Added: 09.11.2011

Tags: , , , , , , , , , , , , , , , , , , , , , ,

Nov 10

Consider this:

Fannie Mae Knew About Toxic Mortgages in 2003!

Former Assistant Secretary OF Housing Catherine Austin Fitts: ‘It’s Time to Bring Our Mortgages Home’

97 Percent Of All US Mortgages Are Backed By The Government

Fannie Mae And Freddie Mac Worst Case Scenario Is $1 Trillion!

Tickerguy On Dylan Ratigan Show – Massive Fraud At The Highest Levels!

Report: Fannie Mae, Freddie Mac Bailouts Could Hit $363 Billion

Bank of America: Thrilled to Pay $3 Billion Penalty – Freddie Mac Putbacks Resolved for 1¢ on $

US Taxpayers on Hook for $5 Trillion of Fannie, Freddie Debt … No Matter What Barney Frank Says

Obama Administration Using Accounting Gimmicks That Would Make Enron ‘Blush,’ Says Republican Lawmaker


Fannie Mae loss widens, asks taxpayers for $7.8B (AP, Nov 8, 2011):

WASHINGTON (AP) — Mortgage giant Fannie Mae is asking the federal government for $7.8 billion in aid to cover its losses in the July-September quarter.

The government-controlled company said Tuesday that it lost $7.6 billion in the third quarter. Low mortgage rates reduced profits and declining home prices caused more defaults on loans it had guaranteed.

The government rescued Fannie Mae and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator has controlled their financial decisions.

Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could reach up $220 billion to support the companies through 2014 after subtracting dividend payments.

Continue reading »

Tags: , , , , , , , ,

Oct 08

Could they have stopped the credit crunch? Fannie Mae knew about dodgy mortgages in 2003, says report (Daily Mail, Oct. 4, 2011):

Mortgage giant Fannie Mae knew about allegations of improper foreclosure practices by law firms as early as 2003 but did not act to stop them, a government watchdog has said.

But it wasn’t until mid-2010 before the company’s overseer began to scrutinise the conduct of some of the law firms when news reports emerged of dubious practices, a report revealed today.

An unnamed shareholder warned Fannie Mae of alleged foreclosure abuses in 2003, the inspector general of the Federal Housing Finance Agency (FHFA) said in the report.

Fannie Mae responded by hiring a law firm to investigate the claims in 2005, which reported it had found foreclosure attorneys in Florida ‘routinely filing false pleadings and affidavits’ the following year.

Continue reading »

Tags: , , , , , ,

Aug 30

It’s Time to Bring Our Mortgages Home – Your Municipality and Community Venture Fund is the Ideal Investor for Fannie, Freddie & FHA Defaulted Mortgages (Solari, August 29, 2011):

By Catherine Austin Fitts (in the first person) and Carolyn Betts

The Administration is now proposing the transfer of significant defaulted mortgages and foreclosed properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration (“FHA”) to large national institutional investors.

A Huge Housing Bargain — but Not for You
The Street (18 Aug 11)

White House Seeks Ideas to Shrink Foreclosure Glut
Catherine, News & Commentary (11 Aug 11)

Enterprise/FHA REO Asset Disposition (PDF)
RFIFinal (10 Aug 11)

Such a transfer is not economic — other than for the large investors and to serve a wider agenda of social control and engineering, including gentrification of numerous areas whose former residents were fraudulently induced and evicted with the use of these mortgages.

I served as FHA Commissioner (See: Austin Fitts Better be Good With Hammer and Nails) during the first Bush Administration and then, several years later, my company, Hamilton Securities Group, served as the lead financial advisor to FHA, providing portfolio strategy advice with respect to $400 billion of financial liabilities and assets, including over 50,000 of foreclosed properties held by the government as the result of mortgage insurance claims for defaulted FHA-insured mortgages.

Continue reading »

Tags: , , , , , , , , , , , , , , ,

Aug 05

Fannie Demands Another $5.1 Billion In Aid From Treasury In Q2, $103.8 Billion Total Since Conservatorship (ZeroHedge, Aug 5, 2011):

There is just one number that is important in the just released Fannie Mae Q2 earnings release, in which the firm reported a loss of “just” $2.9 billion, which includes $6.1 billion in credit related expenses all of which was blamed on Bush (no, really “substantially all of which were related to the company’s legacy (pre-2009) book of business“). The number that matters is that for the 11th consecutive quarter a bankrupt Fannie Mae came running to the Treasury, this time requesting $5.1 billion from Tim Geithner, the second highest number in the past year. This brings the total cumulative bailout since Fannie’s conservatorship to a stunning $103.8 billion. And wasn’t it pathological liar Tim Geithner who himself said a month ago that the GSEs are no longer a burden on the Treasury? Perhaps he can explain the chart below taken from the company’s announcement.

As for the reasons for the ongoing losses, it has everything to do with the abysmal ongoing situation in housing.

The loss in the second
quarter of 2011 reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment, and the prolonged decline in home prices since their peak in the third quarter of 2006. Pursuing loan modifications,  key aspect of the company’s strategy to reduce defaults, also contributed to its loss in the quarter. Fannie Mae expects its credit-related expenses to remain elevated in 2011 due to these factors.

“We remain the largest source of liquidity for the U.S. mortgage market, and we are committed to creating long-term value by helping to build a stable, sustainable housing market for the future,” said Michael J. Williams, president and chief executive officer. “We are focused on reducing taxpayer exposure by limiting our credit losses and building a strong new book of business. Our new book of business is now nearly half of our overall single-family book and we expect these new loans will be profitable over their lifetime.”

Fannie Mae’s net loss attributable to common stockholders in the second quarter of 2011 was $5.2 billion, or $(0.90) per diluted share, including $2.3 billion in dividend payments to the U.S. Treasury. The company’s net worth deficit of $5.1 billion as of June 30, 2011 reflects the  recognition of its total comprehensive loss of $2.9 billion and its payment to Treasury of $2.3 billion in senior preferred stock dividends during the second quarter of 2011. The Acting Director of the Federal Housing Finance Agency (“FHFA”) will submit a request to Treasury on Fannie Mae’s behalf for $5.1 billion to eliminate the company’s net worth deficit. Upon receipt of those funds, the company’s total obligation to  Treasury for its senior preferred stock will be $104.8 billion.

On the other hand, should American homeowners, aka squatters, actually start paying their mortgages, Fannie may be amazed at how quickly it will be able to turn that frown (and quarterly bailout request) upside down. Alas, that would mean fewer iPads sales and the Borg collective can not have that. After all what better reason to justify an imminent TARP 2 than an infinity +1 number of purchases of Angry Birds.

Tags: , , , , , ,

Mar 08

Washington’s Blog strives to provide real-time, well-researched and actionable information.  George – the head writer at Washington’s Blog – is a busy professional and a former adjunct professor.



I heard a recent talk by Richard Wolff – Professor of Economics Emeritus at the University of Massachusetts in Amherst (PhD in Economics from Yale) – where Wolff said that 97% of all U.S. mortgages are either written or guaranteed by the government.

As Bloomberg explained last August:

Fannie Mae and Freddie Mac, the government-controlled companies that issued and guaranteed more than 71 percent of mortgage-backed bonds last year. Between those companies and Ginnie Mae, which guarantees loans insured by the Federal Housing Administration, the government backed nearly 97 percent of U.S. mortgages in 2009.

There are supposedly plans in Washington to wind down Fannie and Freddie. Critics say that would destroy the “recovery” in housing.

If continuing to throw money at Fannie and Freddie would stabilize the economy, I might be for it – even though it is not free market capitalism. I am not wed to either liberal or conservative ideologies, and am instead simply motivated to do whatever will work to stabilize the economy and help the most people.

But as I noted in January:

Most independent experts say that the government’s housing programs have been a failure. That’s too bad, given that the housing slump is now – according to Zillow’s – worse than during the Great Depression.

Indeed, PhD economists John Hussman and Dean Baker, fund manager and financial writer Barry Ritholtz and New York Times’ writer Gretchen Morgenson say that the only reason the government keeps giving billions to Fannie and Freddie is that it is really a huge, ongoing, back-door bailout of the big banks.

Many also accuse Obama’s foreclosure relief programs as being backdoor bailouts for the banks. (See this, this, this and this). Continue reading »

Tags: , , , , , , , , , , , , , , , ,

Feb 27

And US taxpayers will have to pay for it.


Freddie Mac and Fannie Mae, the mortgage-finance companies operating under U.S. conservatorship, requested another $3.1 billion in Treasury Department aid as they reported quarterly earnings reflecting improving health.

Fannie Mae reported net income of $73 million for the three-month period that ended Dec. 31, the Washington-based company’s first positive results in three years. McLean, Virginia-based Freddie Mac’s quarterly loss narrowed to $113 million from $6.5 billion in the same period a year earlier.

Continue reading »

Tags: , , , , , ,

Jan 06

Just another government sponsored looting of the US taxpayer.

George Soros: The US Must Stop Resisting The Orderly Decline Of The Dollar, The Coming Global Currency And The New World Order

Max Keiser on The Banksters: ‘These Guys All Need To Be Fired, Trialed, Hung, Burned! They’re All Freaking Terrorists!’

Hiding The Greatest Depression: How The US Government Does It


BofA Freddie Mac Putbacks Resolved for 1¢ on $ (The Big Picture):

Bank of America settled numerous claims with Fannie Mae for an astonishingly cheap rate, according to a Bloomberg report.

A premium of $1.28 billion was paid to Freddie Mac to resolve $1 billion in claims currently outstanding. But the kicker is that the deal also covers potential future claims on $127 billion in loans sold by Countrywide through 2008. That amounts to 1 cent on the dollar to Freddie Mac.

Imagine if you had a $500,000 mortgage, and you got to settle it for $5,000 — that is the deal B of A appears to have gottem from Freddie Mac.

B of A also paid $1.52 billion to Fannie Mae to resolve disputes on $3.1 billion in loans (~49 cents on the dollar). They remain liable for $2.1 billion in repurchase requests, as well as any future demands from Fannie Mae.

My biggest complaint about the GSEs post government takeover is that they have been used as a back door bailout of the banks. This latest deal reconfirms that view.

Its a wonder B o A didn’t rally further than the 6.7% it surged yesterday . . .

Source: Bank of America Deal on Loan-Repurchase Demands Sets `Template’ for Banks (Bloomberg)

Why Bank of America Must Be Thrilled to Pay a $3 Billion Penalty (The Atlantic):

Some people who aren’t familiar with the mortgage market might have gasped as they read the news that Bank of America would pay $3 billion to government-sponsored mortgage companies Fannie Mae and Freddie Mac. After all, $3 billion sounds like a lot of money. “Maybe BOA is finally getting what it deserves,” some naive bank-haters might have exclaimed. In fact, paying this sum is an incredible win for the bank. The penalty is so small that it’s effectively insignificant.

A Drop in the Bucket

For starters, it’s important to remember that Bank of America also means Countrywide. After purchasing the ailing mortgage company in 2008, Countrywide’s problems became BoA’s problems. And according to the press release, this $3 billion loss provision the bank is taking should cover all Countrywide/BoA mortgages sold or guaranteed by Fannie and Freddie during the housing bubble.

How much is that? According to a Washington Post article on the story, it covers a BoA-Countrywide portfolio of about $530 billion held by Fannie and Freddie. That puts the loss rate on these loans that BoA will be responsible for at less than 1%. You don’t need to be a mortgage analyst to know that a 1% loss doesn’t begin to characterize housing’s deterioration.

No Wonder the Market Celebrated

After this revelation struck, financial stocks were broadly up yesterday. This should come as no surprise. BoA-Countrywide together were originating more than to one-quarter of the mortgages created when the housing market was humming along in the middle of the last decade. If the losses imposed by Fannie and Freddie’s put-backs are in the couple billion dollar range for BoA-Countrywide, then you only need to multiply by three to figure out what the rest of the market probably owes.

If this settlement is any indication, then the other banks and probably won’t be responsible for much more than $9 billion of put-backs from the government entities. That’s a loss they would be happy to endure, considering that the downside could have been well into the tens of billions of dollars. No wonder they’re celebrating.

A Backdoor Bailout?

Continue reading »

Tags: , , , , , , , , , ,

Oct 22

See also:

Three Horrifying Facts About the US Debt ‘Situation’:

#3: The US will Default on its Debt

… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years.

Bear in mind, I’m completely ignoring the debt we took on with the nationalization of Fannie and Freddie, AIG, and the slew of other garbage we nationalized or shifted onto the Fed’s balance sheet. And yet we’re STILL talking about every US family making $31,000 in debt payments per year for 75 years to pay off our national debt.

Obviously that ain’t going to happen.


The government’s estimate, projected through 2013, represents a worst-case scenario that assumes a double-dip recession. The mortgage giants have received about $148 billion in taxpayer funds.

Reporting from Washington —The cost for the huge government bailouts of housing finance giants Fannie Mae and Freddie Mac will grow — and possibly more than double to $363 billion — over the next three years.

But the final taxpayer loss depends mainly on the health of the economy and the real estate market, a federal regulator said Thursday.

The mounting cost of the Fannie and Freddie bailouts has drawn fire from Republicans. They have blamed the firms for triggering the subprime mortgage problems during the housing boom and have blasted the Obama administration for continuing to prop them up.

“No matter what the final cost, the bailout of Fannie and Freddie will be by far the most expensive component of the federal government’s intervention into the financial system,” Rep. Scott Garrett (R-N.J.) said.

Continue reading »

Tags: , , , , , , ,

Oct 08

Posted 2010-10-07 18:30
by Karl Denninger

Source: Market Ticker

Tags: , , , , , , , , , , , , , , ,

Jun 14

fannie-mae
Fannie Mae headquarters stands in Washington.((Bloomberg)

June 14 (Bloomberg) — The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

Fannie and Freddie, now 80 percent owned by U.S. taxpayers
, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.

“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry. Continue reading »

Tags: , , , , , , , ,

Apr 24

Gerald Celente: Obama’s Financial Reform Is Just A Show



Date: 24th Apr 10

Tags: , , , , , , , , , , , , , ,