Enough, let it go!
I hope they hold their breath (literally) for the Republican Congress to approve that. If only....
UNreported future losses are at least 15 times the reported loss.
I’ve seen reports that estimate a further 5% drop in home prices that put the future losses at over 20 times reported losses for the quarter.
We’re looking at Fannie Mae losing US$8Billion/quarter, each quarter, for the next 4 to 6 years.
IMO Fannie Mae is nothing more than a clearing house of slush funds for the government...it will always require more input from the American people.
Setting the Record Straight: Six Years of Unheeded Warnings for GSE Reform (during the Bush Administration)
http://georgewbush-whitehouse.archives.gov/news/releases/2008/10/20081009-10.html
Hat tip to Just A Nobody for that link.
ping
Republicans missed the opportunity to fix this when they had the chance and majorities in Congress because GWB wanted to expand home ownership using the legislation passed during the Carter administration and bolstered during the Clinton administration to achieve their goal of buying votes.
They should have never started that particular gravy train towards the banks.
Where in hell did this come from, abandoning your home when its market value becomes less than the balance due on your mortgage? WTF???? This is housing welfare. For the hundreds of thousands of low-income minorities who “qualified” for $550,000 homes on loan applications known as “ninja’s”—no income and no job verification required. These applications bypassed normal underwriting standards and were generated by a computer program known as Desktop Underwriter or “DU”. DU was programmed by the politicians to basically give mortgages away to a certain demographic sector. So yes these people would just “walk away” from their homes because the homes never cost them one stinking dime. And don’t even try to look at the neighborhoods these homes have birthed. A $550,000 home would have fifteen family members living in it just to make the monthly interest -only mortgage payment. Forget about principal, taxes, and insurance! They only qualified for interest-only with a big fat balloon payment due at the end of five or seven year term loans. It’s the huge balloon payment coming due that most likely triggered the walk-aways and the foreclosures. During the initial terms of these loans these homes would be the scourge of the neighborhood. Now Chinese and Russian investors are buying up these abandoned properties at deep discounts from the banks. And the U.S. taxpayer assholes have to make good to the same banks on the FANNIE/FREDDIE guarantees to the tune of $269 billion. As a taxpayer who has always played by the rules, and who had to actually pay for your own home, are you even just a tiny bit f***ing angry yet?
Obama can print that much money while he’s putting on his golf shoes. /sarc
Prosperity is right around the corner. Prosperity is right around the corner. Some hooligans with baseball bats just went around the corner. Prosperity is right around the corner, where you hear the sounds of bones breaking and piercing shrieks of pain. Prosperity is right around the corner.
FAIL! Why is this entity still around? Oppps, I forgot, because they hold 3/4s plus of the mortgages in this country! =.=
Isaiah 10:14 And my hand hath found as a nest the riches of the people: and as one gathereth eggs [that are] left, have I gathered all the earth; and there was none that moved the wing, or opened the mouth, or peeped.
I believe Fannie Mae is delibertly keeping from clearing properties so tehy can keep getting money. I attempted to pruchase a Fannie Mae property in Kingman, AZ for a winter home, and after 2 months of not hearing whether they would consider my offer, I gave up and purchased another property.
Of course they have a loss. This administration rewards them for losses.
So, how has this worked?
I’m picturing a really bad case scenario in my mind, where Bank A sets a mortgage for $250K, which after 30 years costs the homeowner $400K. So, expecting a $400K return, do they sell the mortgage to Fannie for $400K (less payments to that point)? Or do they sell it for $250K? Or does Fannie only come into play when there is a default, at which time they back the remaining portion of the mortgage to the original $250K, or to the total principal and interest of $400K?
Obviously, the media has failed on its job to fully inform me about important issues affecting my life and my country.