Upcoming Foreclosures

If mortgage delinquencies and foreclosures broke a record during the 1Q, does than mean Fannie lost even MORE?

I know the Obama administration extended an UNLIMITED line of credit to Fannie and Freddie in December (presumably because they KNEW there were going to be A LOT more foreclosures). Ironically, Fannie and Freddie are no where to be found in this financial reform bill. What do you think?? http://news.yahoo.com/s/ap/20100519/ap_on_bi_ge/us_home_foreclosures WASHINGTON – The number of homeowners who missed at least one mortgage payment surged to a record in the first quarter of the year, a sign that the foreclosure crisis is far from over. More than 10 percent of homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. That number was up from 9.5 percent in the fourth quarter of last year and 9.1 percent a year earlier. Those figures are adjusted for seasonal factors. For example, heating bills and holiday expenses tend to push up mortgage delinquencies near the end of the year. Many of those borrowers become current on their loans again by spring. http://www.minyanville.com/businessmarkets/articles/fannie-mae-freddie-mac-gse-conservatorship/5/11/2010/id/28220 Fannie Mae (FNM) and Freddie Mac (FRE) continue to drain taxpayer money as the Treasury provides unlimited lines of credit through 2012. Last week Freddie asked for $10.6 billion and on Monday Fannie asked for $8.4 billion. This brings the total bailout of the GSEs to $144.9 billion. I've been predicting that conservatorship of Fannie and Freddie will be the largest cost to taxpayers of all the financial bailout programs, and that will prove to be the case as the GSEs will have unlimited access to the Senior Preferred Program though 2012. Through the third quarter of 2009, Fannie Mae had tapped its $200 billion line of credit for $60 billion, leaving $140 billion. Its final line at the end of 2012 will be $140 billion plus the losses for the 13 quarters ending with the fourth quarter of 2012. bad ass.............." I bet you think Fannie Mae and Freddie Mac are government agencies, don't you?" Lol............I bet you think you are fking clever, don't you??" Fannie and Freddie are GSE's that should have NEVER been created in the first place. "Fannie Mae and Freddie Mac are only the middleman. " They BOUGHT loans (it's what they do). When the loans default. They LOSE money.

Public Comments

1. Yes they need to be reformed or ended to. Unfortunately the GOP approves of taxpayer backed gambling for wall street,but f**k main street.
2. Uh oh! You read that too I see. But....but.....we're in recovery, growth predictions are up, Obama sent the stock market above 11k the other day!!! -yes, unfortunately they are funneling money into Fannie and Freddy in order to delay the inevitable. I hate to be so pessimistic about this but I have seen no actual forward movement. Everyone is sitting waiting for the next shoe to drop from Obama. Talk about negative to the market! This guy is like the kiss of death when it comes to successful progression.
3. The "conservatorship of Fannie and Freddie" won't be "be the largest cost to taxpayers of all the financial bailout programs". They aren't draining any money. Fannie Mae and Freddie Mac are only the middleman. Through the third quarter of 2009, Fannie Mae had tapped its $200 billion line of credit for $60 billion, leaving $140 billion. ≠ Its final line at the end of 2012 will be $140 billion plus the losses for the 13 quarters ending with the fourth quarter of 2012. I bet you think Fannie Mae and Freddie Mac are government agencies, don't you?