Fannie Mae loss widens, asks taxpayers for $7.8B

[defendandprotect]

Fannie Mae loss widens, asks taxpayers for $7.8B

WASHINGTON (AP) —

The government-controlled company said Tuesday that it lost $7.6 billion in the third quarter. Low mortgage rates reduced profits and declining home prices caused more defaults on loans it had guaranteed.

The government rescued Fannie Mae and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator has controlled their financial decisions.

Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could reach up $220 billion to support the companies through 2014 after subtracting dividend payments.

Fannie has received $112.6 billion so far from the Treasury Department, the most expensive bailout of a single company.

http://news.yahoo.com/fannie-mae-loss-widens-asks-taxpayers-7-8b-221752510.html

[kentuck]

1. Did Fannie sell the mortgages to individual homeowners??

Or did they buy the mortgages from the Big Banks ?? These articles never say? I do not know anyone that got a mortgage from Fannie or Freddie?

[leftyohiolib]

2. they dont write loans what they do is

buy the loans from the banks to free up the banks capitol so the banks can make more mortgages. that's how i understand it

[exboyfil]

3. I tend to agree

No financial reporter is doing his/her job. If I was a financial reporter, I would did into Fannie/Freddies entire portfolio and determine how they ended up with these stinkers. Which banks sold them to them, and then I would determine if the banks satisfied the requirements on selling them (I suspect not). Actually the Fannie/Freddie administration should be doing this anyway in an attempt to recover as much as they could from the banks.

Since that would put pressure on the too big to fail banks, don't expect it to happen anytime soon. What is happening is that it is just more TARP/bailout dripping through the system. Who knows how much longer this is going on, and how much whiter the taxpayer is going to be bled.

[kentuck]

5. This is just a slick way to bail out the banks again and again...

and to deceive the population into believing Fannie and Freddie are the problem. They were left holding the bag after the banks took all the money out of the bags. :-)

[defendandprotect]

6. Don't think that's quite all there is to the story of Freddie and Fannie Mae ..!!!

[lonestarnot]

4. And the beat goes on.