This is just insane at this moment in time, I mean how many more billions do they need to borrow from the taxpayer, they have borrowed nearly $100 Billion and still cant even get out of their own fucking way, between freddie and fannie it has already cost the tax payer $260 BILLION dollars!!!!!! When does this end....This credit crisis is 100X worse than what most think it is. Wake up and realize that bailouts and stimulus and trillions in spending will not end this crisis like everyone thinks it will, there are more problems that are coming to this economy due to the excessive spending to prop up the entire global economy, there is no fix for these problems, if you think spending trillions is the quick fix out of this mess you are a complete fool. Fannie Mae seeks $8.5 billion more in federal aid Fannie Mae reports $8.69 billion loss for Q1, asks for additional $8.5 billion in aid ap Daniel Wagner, AP Business Writer, On Friday May 6, 2011, 6:05 pm EDT WASHINGTON (AP) -- Fannie Mae asked the government Friday for an additional $8.5 billion in aid after declining home prices caused more defaults on loans guaranteed by the mortgage giant. The company said it lost $8.7 billion in the first three months of the year. Those losses led Fannie to request more than three times the federal aid it sought in the previous quarter. The total cost of rescuing the government-controlled mortgage buyer is nearing $100 billion -- the most expensive bailout of a single company. Combined with the bailout of sibling company Freddie Mac, the government expects their rescue to cost taxpayers about $259 billion. That money will cover the mortgage giants' losses on soured loans made in the midst of the housing bubble. Home prices declined on average 1.8 percent across the country during the January-March quarter, Fannie Mae said. That led to more foreclosures and to homeowners abandoning houses that were worth less than they owed on their mortgages. "We expect our credit-related losses to remain elevated in 2011 as we continue to be negatively impacted by the prolonged decline in home prices," President and CEO Michael Williams said in a statement. The losses incurred in the first three months of the year are related to loans that were extended before 2009, Fannie Mae said. The company expects to make money on home loans that it acquired since January 2010. The companies nearly toppled because of losses on risky mortgages that they purchased between 2005 and 2008. They tightened their lending standards after those loans started to go bad. Fannie and Freddie buy home loans from banks and other lenders, package them into bonds with a guarantee against default and sell them to investors around the world. When property values drop, homeowners default -- either because they are unable to afford the payments or because they owe more than the property is worth. Because of the guarantees, Fannie and Freddie must pay for the losses. Fannie Mae, based in Washington, and Freddie Mac, based in McLean, Va., own or guarantee about half of all mortgages in the U.S., or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year. The Obama administration unveiled in February a plan to slowly dissolve the mortgage companies. The aim is to reduce the government's role in the mortgage market. Exactly how that would happen was left for Congress to decide. Whatever the outcome, it would reverse decades of federal policy aimed at encouraging Americans to purchase homes. Mortgages almost certainly would become more expensive. Fannie Mae's January-March loss attributable to common shareholders works out to $1.52 per share. It takes into account $2.2 billion in dividend payments to the government. That compares with a loss of $13.1 billion, or $2.29 per share, in the same period last year.
Total fraud. Everybody is in bed with everyone else. Hot properties go to favorites. I'll point out to you: http://247wallst.com/2009/04/22/cfo-death-only-clouds-freddie-mac-fannie-mae-further-fre-fnm/ What's that tell you is coming? Any trillion dollar market is rife with fraud. This one is no different. And it continues daily.
Its just crazy, where will be the tax payers end up?, constantly having to foot the bill. This is why all future homeowners, should be required to come up with at least 20%-25% down to buy a home or investment property. This would help curtail buying frenzies that just lead to more real estate market bubbles.
An article about Fannie Mae that appeared in the New York Times on September 30th of 1999 predicted everything that was to follow: http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html "In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's." ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
Mortgage-backed securities. All the king's horses and all the king's men, couldn't put the strips back together again.
And we tell our kids that there is so much good in this world! The people who make it big are the cheaters who manage to not get caught! In reality it isn't cheating if you don't get caught.