Skip to comments.Fannie Mae at risk of needing a bailout
Posted on 02/20/2016 9:14:46 AM PST by Lorianne
Fannie Mae, the state-sponsored U.S. mortgage backer, is at risk of needing a government bailout that could shake confidence in the housing finance market, senior officials have warned.
Fannie Mae's chief executive and its regulator are sounding the alarm on a decline in the institution's capital cushion, which is on course to vanish in 2018, when it would have to ask the US Treasury for emergency funds.
Their warnings highlight Washington's inaction on housing policy and its failure to reform the institution, which guarantees nearly $3 trillion of securities and enables 30-year fixed rate loans, following the last financial crisis.
Since 2008 Fannie Mae has been in the post-crisis limbo of state-sponsored "conservatorship," neither fully nationalized nor private, following several unsuccessful attempts by Congress to overhaul it.
(Excerpt) Read more at cnbc.com ...
20 February 2016
Forgive the re-use of a movie line.
You lost ANother one?
This just may become an election year tradition.
You know... “Too big to fail” ?
WE are at risk of Fannie Mae getting a bailout.
The Welfare Mortgages are coming home to roost again.
Thank you, Barney Frank.......
This is just a way to keep giving your neighbor a house that the taxpayers get to make the payments on.
Perfect timing for the election. Remind the LIV what party was pushing housing loans for non qualifiers. What party was threatening the mortgage industry if they did make said loans. What party blocked Bushes Fannie / Freddie proposed reforms. What individuals and their political party were enriched while running those failed organizations. And then tie it all together to the 2008 crash.
I have to work like a dog to pay for bank bailouts and ozero care.
@ Post 11
Oh, how I wish it were so. If the American people understood what created the housing crisis and the culpability of one party in particular and the corruption that accompanied it on the part of powerful people like Franklin Raines and Jamie Gorelick and the big banksters on Wall Street there would be riots.
The response by government (both parties) to the crisis was a crime committed against the nation where present taxpayers and future taxpayers were robbed to benefit the very banksters and political donors who created the crisis in the first place.
They pulled off the biggest heist in history - an unprecedented transfer of wealth to the few on the backs of an unwitting nation.
Yesterday it was reported that everything was great and they were paying the Fed Gov a dividend of $2 billion.
Who could have seen that coming?
Just say no.
And which party voted in the majority, both houses, for the bailouts (hint: it was the Democrats).
The last paragraph of the article:
“A Treasury spokesman said: “Taxpayers injected $188 billion into [Fannie Mae and Freddie Mac] to stabilize the housing market and lay the groundwork for our economic recovery. Director Watt’s remarks underscore the administration’s consistent position regarding [their] conservatorship: the best long-term solution is comprehensive housing finance reform. Until then, Fannie Mae and Freddie Mac will continue to rely on the $258 billion of taxpayer provided support to sustain market confidence.”
In addition, federal sponsored credit unions have started transferring their mortgages to Fannie and Freddie to offset some of the poorer loans they hold. That’s what happened to our mortgage.
I read that.
The bailouts are NOT stabilizing the housing market ... they are stabilizing the debt and derivatives market ... temporarily.
Not sustainable under any scenario.
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