Does Congress have plans to do ANYTHING regarding Fannie and Freddie and the potential trillion dollar losses?

Deal Score0

http://www.bloomberg.com/news/2010-06-13/fannie-freddie-fix-expands-to-160-billion-with-worst-case-at-1-trillion.html

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.

Fannie, based in Washington, and Freddie in McLean, Virginia, own or guarantee 53 percent of the nation’s $ 10.7 trillion in residential mortgages, according to a June 10 Federal Reserve report. Millions of bad loans issued during the housing bubble remain on their books, and delinquencies continue to rise. How deep in the hole Fannie and Freddie go depends on unemployment, interest rates and other drivers of home prices, according to the companies and economists who study them.
Does the tax payer have to eat all these losses??
nancy……………Yes, I’m aware of that program that all top Democrats ALSO supported when it passed. What is your point exactly??

6 Comments
  1. Reply
    wrfine
    January 22, 2011 at 10:36 pm

    Yeah Obamas 10 Trillion Dollar bailout!!

  2. Reply
    Nightwind
    January 22, 2011 at 11:20 pm

    I imagine government will do what they’ve always done in bad economy and potential citizen uprisings of anger. Keep the debt in the background so few actually know much about it, propagandize the willing idiots that like the idea of higer taxes and bilk the American citizen for much of thier hard earned money to cover up government irresponsibility

  3. Reply
    Bulldog
    January 22, 2011 at 11:35 pm

    Other than supporting the decisions of Hussein,no,they’ll just let it carry on!!

  4. Reply
    Nancy
    January 22, 2011 at 11:53 pm

    BUSH SIGNS AMERICAN DREAM DOWNPAYMENT ACT
    $ 200 million program will help tens of thousands of low-income families to become homeowners
    [Photo: Acting Secretary Alphonso Jackson makes some remarks just before President Bush signed the American Dream Downpayment Act]
    Acting Secretary Alphonso Jackson makes some remarks just before President Bush signed the American Dream Downpayment Act.

    WASHINGTON – There is a reason why many American families can’t buy their first home – they can’t afford the downpayment and other upfront closing costs required to qualify for a mortgage. For as many as 40,000 low-income families, that will change as President Bush today signed The American Dream Downpayment Act into law.

    Applauding Congress for authorizing the annual $ 200 million downpayment assistance program, Bush and Housing and Urban Development Acting Secretary Alphonso Jackson said the initiative will also help meet the Administration’s “Homeownership Challenge” to increase minority homeownership by 5.5 million families by the end of the decade.

    “Today we are taking action to bring many thousands of Americans closer to the great goal of owning a home,” said President Bush. “These funds will help American families achieve their goals, strengthen our communities, and our entire nation.”

    “This is a good day for thousands of families who have only dreamed about sharing in the American Dream of homeownership,” said Jackson. “Not only will this law allow thousands of hard-working Americans to unlock the door to homeownership, it will also help close the gap that separates minority households from the rest of the country when it comes to owning a home to call their own.”

  5. Reply
    Philip McCrevice
    January 23, 2011 at 12:24 am

    I have a simple question:

    “Why is the government guaranteeing mortgages at all?”

    I mean, a bank gives me a mortgage I promise to pay back. If I don’t pay it back, the bank gets my house.

    Why is the government involved at all?

  6. Reply
    jdm
    January 23, 2011 at 1:07 am

    ha…sure…they’re going to cut spending and lower taxes too!!

    Of course not. The f-ing architects of the housing meltdown wrote the new finance bill! How serious could they ever possibly be?

    Leave a reply

    Register New Account
    Reset Password