Fannie Mae asks for $1.5B in aid after 2Q loss

AP via Yahoo! News ^ | August 5, 2010 | Alan Zibel, AP Real Estate Writer

[Oldeconomybuyer]

WASHINGTON (AP) -- Fannie Mae is asking for less money from the government, a sign that the cost to taxpayers for bailing out the mortgage giant could be billions lower than once thought.

The government rescued Fannie Mae and sibling company Freddie Mac from the brink of failure nearly two years ago. The new request means they have needed $146.4 billion to stay afloat.

Fannie and Freddie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion.

Edward DeMarco, the government's chief regulator of the two companies, said in interview last week that the total cost to taxpayers for rescuing Fannie and Freddie should be less than $400 billion. That's under most economic scenarios, he said.

[omega4179]

Again, Why is the Government involved in mortgages? Shut these institutions down or privatize them. 2012!

[denydenydeny]

Love the wording in this article. We're supposed to be grateful that WE "ONLY" HAVE TO FORK OVER AN EXTRA $146 BILLION THAT WE DON'T HAVE.

The only additional government funding I'd give Fannie Mae is for tar and feathers.

[Psycho_Bunny]

Leeches and thieves.

[Dubya-M-DeesWent2SyriaStupid!]

Unbelievable!

See post # 205 below

http://www.freerepublic.com/focus/news/2565177/posts?q=1&;page=201

These two threads need tied together anyway.

[Dubya-M-DeesWent2SyriaStupid!]

ping

[Dubya-M-DeesWent2SyriaStupid!]

So this is Obama asking Obama to print more monopoly money?

And or a warning that Obama is going to give more banks craploads of money to sit on and fake like they will give it out to home modifications. A repeat of the last year all over again.

[GOPJ]

Why is the Government involved in mortgages? Shut these institutions down or privatize them. 2012!

My guess is because they couldn't bully enough banks to make $400,000 home loans to people making $10,000 a year...

[sportutegrl]

Just imagine the headline if W was still Prez.

[Son House]

Why is the Government involved in mortgages?

Don’t the savers and investors also suffer more loss?

Mortgage-backed Securities

http://useconomy.about.com/od/glossary/g/mortgage_securi.htm

Definition: Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors. This allows the banks and mortgage companies to sell mortgages off, and take them off their balance sheets. This removes one constraint on banks to make sure the loans are to qualified borrowers.

[VanDeKoik]

And here I just got off of 15 straight minutes without a washington-inflicted migraine.

[SunkenCiv]

Thanks Oldeconomybuyer.

• An August Surprise from Obama? -- "Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth."

[KoRn]

....”Less than expected”.............

[rockvillem]

Love the wording in this article. We're supposed to be grateful that WE "ONLY" HAVE TO FORK OVER AN EXTRA $146 BILLION THAT WE DON'T HAVE.

Amen - leave it to AP to pat the Administration on the back for allowing Fannie and Freddie to squander less than the worst case scenario.

[F. dAnconia]

...in the words of Ernie Anastos;

"Keep fu*&ing that chicken"

[cranked]

Shut their doors already.......

[luvie]

Close the damn thing down before it does any more damage to
our way of life...and Fannie Mae, too!

[Hoodat]

Will the Treasury fork over the money without Congressional approval again?

[onyx]

Close the damn thing down before it does any more damage to
our way of life...and Freddie Mac, too!

- - - - - - - -

Yes, Ma’am! Like first thing tomorrow morning!

Worthless parasite employees too.

[luvie]

It should have been closed down 10 years ago...but noooooooo....we let Bahwny Fwank persuade us that it was ok!

IT WAS NEVER OK TO SELL PROPERTY TO PEOPLE WHO COULDN’T AFFORD IT.

There...got that out! Whew!