follow this weeks losses and stories about FMae&FMac...
Oddly, what is not reported is that the interest income PAID to the Fed govt on the ownership interest we bought for U.S..., is larger than the funds that we paid for that interest.
No, we are NOT making a lot of money.
Yes, they are both still loosing money.
But, what we paid for them IS being "covered".
The problem is, however, that ALL of the recent mortgages in RE are being severely impacted.
Remember, while FMae&FMac did make some subprime RE loans - late in the peak period.
MOST of those subprime and ARM loans were NOT made by them, but by the Wall Street investment banks - in the sand states = Cal, Nev, Fla & AZ.
And, due to the accounting rule changes, made for the big bailed out banks, nobody has fully written down the RE mortgage losses. Not yet.
Other articles document the non-agency RE loan foreclosure problems, and suggest that while FMae&FMac are bleeding, so are the other RE subprime lenders.
Thanks to Colin Barr for these very informative articles.
Must reads !!!
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Street Sweep
Following the money in banking, economics and Washington
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Fannie-Freddie tab hits $153 billion
Fannie Mae posted a $1.3 billion third-quarter loss
blaming high unemployment and falling house prices for the latest rise in loan defaults.
http://finance.fortune.cnn.
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Freddie shares its foreclosure fears
The foreclosure follies are turning into quite a headache for Freddie Mac
the taxpayer-owned mortgage investor.
http://finance.fortune.cnn.
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Freddie Mac sees no housing recovery soon
Freddie Mac lost $2.5 billion in the third quarter
and said it will be a "considerable time" before the housing market recovers.
http://finance.fortune.cnn.
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S&P sees $700 billion housing-fix tab
The bill for fixing the broken-down U.S. mortgage system
could approach $700 billion, Standard & Poor's said Thursday.
http://finance.fortune.cnn.
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