"Fannie, Freddie to buy back loans" by Associated Press | February 11, 2010
WASHINGTON - The government-controlled mortgage finance companies Fannie Mae and Freddie Mac said they will buy back troubled loans contained in securities they have already sold to investors.
Related:
“They’ve cleared the decks to use Fannie and Freddie as a vessel for whatever they want.... taking troubled mortgage investments off banks’ books.’’And how much is that going to cost, readers?
"Obama’s budget seeks tax hikes on firms, rich; $1.1 trillion more sought in a decade" by Globe Wire Services | February 2, 2010
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More: MSM Xmas Gifts: To Fannie and Freddie
Heck of a gift, American taxpayers.
The companies are repurchasing mortgage loans for which borrowers have missed at least four months of payments. At the end of last year, Fannie had about $127 billion of such loans, while Freddie Mac had about $70 billion.
The companies guarantee the mortgage securities they sell to investors.
Buying the delinquent loans back would cost less than making those guarantee payments, both companies said.
Then why didn't the government just pay off all the mortgages rather than giving trillions to Wall Street?
Oh, that wouldn't allow the banks to collect all that interest as they stuff your tax loot in their pockets, huh?
Either way, it is YOU getting POKED in the POOPER, taxpayers!
Fannie Mae, based in Washington, and its McLean, Va., rival Freddie Mac have been run under government oversight since they almost collapsed in September 2008.
They have required $111 billion in federal aid to stay afloat.
More than that.
Late last year, the Obama administration pledged to cover unlimited losses through 2012 for both companies, lifting an earlier cap of $400 billion.
That gave Fannie and Freddie more leeway to buy back delinquent loans....
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The Last Word From Davos
