Freddie Mac and Fannie Mae has lost over $200 billion dollars in 3 years. There is no rhyme or reason for what is occuring at these 2 institutions other than they are bleeding taxpayer money.
I have a suggestion though if you want to save money,close like the Post office, but close on Mondays and Fridays and early on Wednesdays and that should save billions.
Of course I am being facetious, but the Post office said this would save money. They must be right they only lost 4 billion compared to the $200 billion Fannie and Freddie lost.
The Washington Examiner posted this excerpt…
Hoping to keep the news low-keyed and under-reported, Fannie Mae announced late Friday afternoon after the markets closed that it had lost over $74 billion in 2009, bringing its 3-year loss totals to $137 billion.
This is in addition to Freddie Mac’s $80 billion loss during the same period
Fannie and Freddie have continued to squander taxpayer dollars even after the massive bailouts by the federal government. In fact, the mortgage giants lost more money after the bailouts than they did before.
I don’t know about you but I am not feeling real good about the leadership of these train wrecks and how our President plans on addressing this ever growing problem. So far, Fannie and Freddie have lost 4 times ($200 billion dollars) what Bernie Madoff swindle from his pigeons ($50 Billion) a couple of years ago.
The Republicans are getting antsy over this financial conundrum as The Hill‘s Silla Brush posted this…
Two House Republicans are criticizing the Obama administration for not presenting an overhaul plan for Fannie Mae and Freddie Mac, the two home loan giants continuing to receive massive taxpayer bailouts.
Republican Reps. Darrell Issa (Calif.) and Jim Jordan (Ohio) said it is “unacceptable” that the administration has not detailed how the companies should be restructured. The administration was expected in its 2011 budget to present a policy for the future of the companies, but the administration was silent on the two firms that needed to be bailed out under the weight of heavy real estate losses.
“It appears that the administration is using Fannie and Freddie as a backdoor conduit for appropriating billions of dollars of taxpayer money without the consent of Congress,” the members write in a letter dated March 1. “If that is true, the American people have a right to learn about it in a transparent public forum where those responsible for the policy can be held accountable.
All that being said, both Freddie and Fannie have engaged in fraudulent activities as reported by the Wall Street Journal..
New research by Edward Pinto, a former chief credit officer for Fannie Mae and a housing expert, has found that from the time Fannie and Freddie began buying risky loans as early as 1993, they routinely misrepresented the mortgages they were acquiring, reporting them as prime when they had characteristics that made them clearly subprime or Alt-A.
In general, a subprime mortgage refers to the credit of the borrower. A FICO score of less than 660 is the dividing line between prime and subprime, but Fannie and Freddie were reporting these mortgages as prime, according to Mr. Pinto. Fannie has admitted this in a third-quarter 10-Q report in 2008.
An Alt-A mortgage is one in which the quality of the mortgage or the underwriting was deficient; it might lack adequate documentation, have a low or no down payment, or in some other way be more likely than a prime mortgage to default. Fannie and Freddie were also reporting these mortgages as prime, according to Mr. Pinto.
After all of the brow beating that Obama has been directing at the financial industry as a whole, he may want to step back and rake his own yard and bag these crimes and criminals at Fannie Mae and Freddie Mac before taxpayers put another dime into these corrupted organizations.
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