Update 8/10: FutureMoneyTrends – “Bank of America (Debt Man Walking) – With great generosity, the Bank of America will sell part of its home loan portfolio to Fannie Mae. There are 400,000 loans with a balance of $73 billion. This great deal for the taxpayers is the unloading of loans with a 13% delinquency rate. (Editor’s note: – Bank of America has been making loans to illegals – what are the chances they can pay?) By any other name, a bailout is still a bailout.
Freddie Mac recently requested an additional $1.5 billion from the taxpayer purse.
Someone please, stop the madness.
Update 8/09: – This just in from the AP – Fannie and Freddie have just been downgraded by S&P. “Standard & Poor’s Ratings Services on Monday downgraded the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S. debt…The agency also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options…All the downgrades were from AAA to AA+. S&P says the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term U.S. debt. Their creditworthiness hinges on the U.S. government’s ability to pay its own creditors.
Original Story –
Fannie Mae wants your money…again. Mortgage finance giant Fannie Mae said it will ask for an additional $5.1 billion from taxpayers because it only suffers losses on loans made prior to 2009.
The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share. They think that loans made after 2009 might turn profitable in their lifetime. Oh goody. The loans before 2008 won’t.
They lost $3.9 billion in the second quarter and $5.7 billion in the first quarter.
Fannie and Freddie together have taken $169 billion from taxpayers. The government needs to get out of the business – we can’t afford them.
If you’ll remember, Dodd and Frank, the two who helped cause the subprime crisis, wrote a financial bill that IGNORED, absolutely IGNORED Fannie and Freddie. And we wonder why we had a downgrade. We apparently need to be downgraded more. They are handling this problem the same way they handle the post office.