Fannie and Freddie Mae Get a Blank Check For Christmas Freddie Mac reported a 13% drop in mortgage purchases in November, Fannie Maes book of business declined at an annualized rate of 6.7% in the same month. Portfolios continue to deteriorate. The single-family serious delinquency rate climbed to 4.98% in October, which is the most recent month of data. The multifamily delinquency rate dipped to 0.61% in October from 0.62% in the previous month. Delinquency rates in both categories swelled from October 2008, when the single family delinquency rate was 1.89% and 0.21% for multifamily loans.
Blank Check for Freddie and Fannie The Treasury Department uncapped potential aid to Fannie Mae and Freddie Mac, lifting the existing $400 billion cap on government cash available. On Christmas Eve, President Obama removed cap on each of the two mortgage underwriters, they will have access to unlimited Treasury funds through 2012
Oversight First, the timing speaks volumes to me about how much more bad paper is in the pipeline. Doing this on Christmas Eve amounts to hiding and the corporate beneficiaries cant be far behind. With trillions of dollars in taxpayer exposure, we need transparency. When the Govt changes the rules and gives blank checks to institutions, in a less than transparent fashion, we need oversight. We should be sure that we are not getting ripped by the lenders that put us here in the first place. REsourced from www.yourpropertypath.com You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
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