Letters from Readers: Suggestions for the president-elect Dec 1, 2008
Those who govern Fannie Mae and Freddie Mac need to be governed more closely so that they make loans to those who qualify, and not just give them away ... Correct the conditions that caused it, get rid of Fannie Mae and Freddie Mac and replace them with private banks. (Florida Times-Union)
Reverse mortgages a lifeline Dec 1, 2008
Government-owned mortgage buyers Freddie Mac and Fannie Mae recently ordered their servicers to suspend foreclosure sales and evictions for about 16,000 U.S. households over the holidays. As the housing market continues its slide, analysts expect seniors to increasingly rely on reverse mortgages to remain solvent. (San Diego Union-Tribune)
A CENTS OF HISTORY Nov 30, 2008
President Thomas Jefferson's 15 million bargain from the French doubled the size of the US. In today's money, that's 217 billion - or about as much the government has pledged to cover losses by mortgage lenders Freddie Mac and Fannie Mae alone. In the case of the Louisiana Purchase, we got the Midwest. (New York Post -- Opinions)
Bollin on Business: Ready for the season? Nov 30, 2008
The government takeover of Freddie Mac and Fannie Mae is said to provide stability to the mortgage markets and may provide a foundation for a renewed housing market as early as the fourth quarter of this year. The leading indicators do look pretty strong, and perhaps the economy has begun a long upward trek. (Green Valley News & Sun, AZ)
Time To Refocus On Less Materialism, Simpler Life Nov 30, 2008
They're wildly supported in all this by the increasing Democratic cohort in Congress, many of whose members (most notably -- regarding for instance Fannie Mae and Freddie Mac -- Barney Frank and Chris Dodd) have contributed hugely to crushing the economy. At least we can hope they'll do the right things. (Townhall.com)
LETTERS: NCT, Nov. 30, 2008 Nov 30, 2008
Fannie Mae and Freddie Mac never should have happened and now the fox (Barney Frank, Chris Dodd and Chuck Schumer) is in charge of the hen house. If Republicans had done what they did, they would have been booted out and well they should have been. (North County Times)
Government's addiction to debt a real problem Nov 30, 2008
As economist Russell Roberts explained in The Wall Street Journal, the problem is that "Congress designed Fannie Mae and Freddie Mac to serve both their investors and the political class. Demanding that Fannie and Freddie do more to increase homeownership among poor people allowed Congress and the White House to subsidize low-income housing outside of the budget at least in the short run. It was a political free lunch." ... Yet, just as with Fannie Mae and Freddie Mac, few leaders have had the... (Athens Banner-Herald)
Why Detroit's Big 3 can't follow steel industry's path Nov 30, 2008
Mr. Paul concedes that in the wake of the government engineered rescues of Bear Stearns, AIG, Fannie Mae, Freddie Mac and Citigroup, "there is a little bailout fatigue." But he's hopeful that after doing so much for white collar industries, regulators will approve a much smaller rescue plan for a blue collar one. "The right decision to make is a $25 billion bridge loan that would be repaid with some conditions attached to it," he said. (Pittsburgh Post-Gazette, PA)
Enough with the GOP hissy-fitting Nov 30, 2008
For example, the idea that Fannie Mae and poor people, buoyed by a 1977 Jimmy Carter-era law, are somehow to blame for the Wall Street and banking meltdown is as absurd and free of facts as most every other sky-is-falling charge spewed about from Republicans these past 20 years. Did the Carter-era Community Reinvestment Act force huge financial giants like Citigroup, Lehman s and Goldman Sachs to run their accounts with 33-1 debt ratios. (La Crosse Tribune, WI)
Once the ball gets rolling... Nov 30, 2008
com: Andrew Steele - Once the ball gets rolling. Once the ball gets rolling. (Globe and Mail -- Business)
Fannie Mae Redemption Nov 29, 2008
WASHINGTON, Nov. 28 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: ) will redeem the principal amounts indicated for the following securities issues on the redemption dates indicated below at a redemption price equal to 100 percent of the principal amount redeemed, plus accrued interest thereon to the date of redemption ... Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market ... Fannie Mae has a federal charter and... (PR Newswire)
Foreign central banks' US debt holdings fell -Fed Nov 29, 2008
The foreign institutions reduced their holdings of securities from government-sponsored agencies like Fannie Mae (FNM.N: , , , ) and Freddie Mac (FRE.N: , , , ), by $13. 29 billion to their holdings, to stand at a total $871. (Reuters)
Fed boosts lending to financial sector Nov 29, 2008
It said it would begin buying mortgage-backed securities from mortgage giants such as Fannie Mae and Freddie Mac. And it announced a program to lend to financial firms that buy securities backed by various types of consumer debt, from credit cards to auto and student loans. (MSNBC -- Politics)
Bush says Citigroup deal needed to protect system Nov 29, 2008
Six months later, the government was forced to take over mortgage giants Fannie Mae and Freddie Mac and throw a financial lifeline, which was recently expanded, to insurer American International Group. At the meetings in Lima, Peru, over the weekend, Bush succeeded in getting the nations there to endorse the action plan drafted a week earlier at an international summit Bush hosted in Washington. (Waterloo-Cedar Falls Courier)
Editor's Mailbag (Nov. 28) Nov 29, 2008
This liberalism caused the failure of Fannie Mae, Freddie Mac and other leading institutions. The fallout caused the stock market to crash, and along with it my retirement went south. (Albany Democrat-Herald, OR)
Holiday bailout also is necessary Nov 29, 2008
Taxpayers already have committed nearly a trillion dollars to saving mortgage monsters Fannie Mae and Freddie Mac, insurance giant AIG and the entire banking industry. What's a few billion more for tinsel and lights. (Athens Banner-Herald)
Freddie Mac May Face SEC Suit For Errors Nov 29, 2008
An SEC lawsuit would come at a tumultuous time for Freddie Mac, which faces criticism from Congress, the White House and private industry that it and its larger rival, Fannie Mae, have grown so big they pose a threat to the nation's economic stability ... Freddie Mac and Fannie Mae are congressionally chartered, publicly traded companies known as government-sponsored enterprises. (Yahoo News -- Corporate Reform)
Dispute costs state in suit Nov 29, 2008
"Protecting members of the retirement systems and their investments is at the heart of the Department's mission."Keenan's ruling could affect a second class action suit filed in September against the officers of the other government-supported mortgage company, Fannie Mae. Moore petitioned the court to be the lead plaintiff in that case this month because the state has lost more than $70 million in investments with Fannie Mae. (News & Observer)
Regulation: Stop Covering Up And Kill The CRA Nov 29, 2008
The CRA should be abolished, along with the government-sponsored enterprises that fueled the secondary market for subprimes under pressure from Clinton, who ordered HUD to set quotas for "affirmative action" lending at Fannie Mae and Freddie Mac ... HR 7264, which has nine co-sponsors, would repeal the CRA. And HR 7094, with 17 co-sponsors, would dissolve Fannie Mae and Freddie Mac. (Investors Business Daily)
Boy climbs beanstalk, meets Freddie Mac Nov 29, 2008
And who does he meet up there but Fannie Mae (Cathy Lee-Visscher) and Freddie Mac (Johnna Murray), who hold the paper on all the farms. The pair have bags of ill-gotten gains as well as a goose, Goldie (Joanne Maurer), and a magic harp, Harpy (Tom Detwiler), that Jack steals. (Hillsdale Independent, NY)
Foreclosure help to the rescue Nov 29, 2008
Fannie Mae and Freddie Mac already have announced a foreclosure moratorium during the holidays. Jacksonville Area Legal Aid opened up a new office on the Northside in October through grants from the city and the Community Foundation in Jacksonville. (Florida Times-Union)
Let Home Prices Fall Nov 28, 2008
Barney Frank, whose prognosticating abilities were evident five years ago when he fought reform of Fannie Mae and Freddie Mac they do not pose "a problem with a threat to the Treasury.". Now these same Washington soothsayers are predicting that today's economic troubles can be ameliorated by propping up real estate prices. (CBS News)
NYT: GOP committee keeps heat on Obama Nov 28, 2008
Mr. Obamas aides made sure to test the potential reaction to Mr. Holder on Capitol Hill before deciding to give him the nomination and ruled out some nominees who had ties to Fannie Mae and Freddie Mac. Others who could have become problematic quickly pulled their names from consideration. (MSNBC -- Race)
Investor Report: 1031 TIC Bankruptcy Nov 28, 2008
He served as a member of the U.S. Department of Housing and Urban Development's Working Group on Computerized Loan Origination (CLO) systems, and is a member of the Editorial Board of the Fannie Mae Foundation's journal, Housing Policy Debate. He is the author of two books on mortgage finance and real estate. (RealtyTimes)
A dilemma in British housing Nov 28, 2008
Or look at paper issued by Fannie Mae and Freddie Mac, which are under government conservatorship and enjoy an "implicit" guarantee. Their bonds have done so stunningly badly in recent weeks, as central banks outside the United States deserted them in droves, that the U.S. government was forced to go in and buy them up. (International Herald Tribune -- Business)
New U.S. relief plan may take time Nov 28, 2008
In the second part of the program, the Fed has agreed to purchase $500 billion worth of mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. "This brings a major buyer into the marketplace with very deep pockets to snap up available securities - and a sizable number of them at that," said Keith Gumbinger, vice president of the market research firm HSH Associates in Pompton Plains, New Jersey. (International Herald Tribune -- Business)
Cunningham: Avoiding fear, shame of foreclosure Nov 28, 2008
Whether it is actions by Fannie Mae, the FDIC or the lenders themselves, solving the mortgage crisis is recognized as an essential component to getting the economy back on track. Any resolution is likely to be as complex as the problem itself. (CNN -- US)
Big drop in mortgage rates energizes potential buyers Nov 28, 2008
Credit the Federal Reserve's announcement this week that it will buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac, helping the two mortgage-finance giants increase the pool of money available to banks and other lenders to make new mortgages. "It is pretty remarkable stuff," says Bob Walters, the chief economist at Quicken Loans, where applications quadrupled Tuesday from Monday. (USA Today -- Money)
Uncle Sam's Bipolar Disorder Nov 28, 2008
Today s gargantuan mess started largely because Washington used Fannie Mae and Freddie Mac to promote affordable housing. The more pressure there is on these companies, the less we will see in terms of affordable housing, Rep. (Human Events Online)
Obama's fiscal ideas man Nov 28, 2008
(One example: unlike many Democrats, he is a longstanding critic of Fannie Mae and Freddie Mac. Yet he still says they need to get even bigger during the crisis, to keep mortgage lending flowing. (Sydney Morning Herald -- Business)
To The Point Nov 28, 2008
Fannie Mae working to stay listed. The mortgage lender, which was seized by federal regulators in Sept., says it's mulling a reverse stock split to boost its share price to 1 by May 11 to avoid a NYSE delisting. (Investors Business Daily)
The Anti-Obama Campaign That Didn't Happen Nov 28, 2008
McCain was also accused of playing on race for running an ad that highlighted Obama's relationship with Franklin Raines, a former executive at Fannie Mae who is black. Says Davis: "I never saw anybody play the race card but the Obama campaign.". (Time.com)
Obamas Treasury nominee: A reassuring figure for Treasury Nov 27, 2008
The current treasury secretary, Hank Paulson, is reworking the $700 billion bail-out plan on the fly, policymakers are struggling over a new approach to foreclosures, the status of the mortgage agencies, Fannie Mae and Freddie Mac, is in limbo, and Congress has just sent the carmakers, teetering close to insolvency, home empty handed. The two months before Mr Obama is sworn in seem like an eternity. (The Economist)
Borrowers seek a 'taste of the bailout pie' Nov 27, 2008
" In the past few months, rates have swung wildly, sometimes within hours. Following the government's takeover of Fannie Mae and Freddie Mac in early September, rates fell, then climbed again. Some loan officers say this drop may be just as fleeting, while others say it may last a while. It's the uncertainty that frustrates lenders and borrowers alike. "I've got a whole slew of people on my wall here who told me: 'Call when it gets to 5. 5 percent,' " said Brian FitzGerald, executive vice... (Huntington WSAZ-TV, WV)
Fannie Mae Advises NYSE of Intent to Meet Continued Listing Standard Nov 27, 2008
WASHINGTON, Nov. 26 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: ) today reported in a filing with the U.S. Securities and Exchange Commission (SEC) that the company has notified the New York Stock Exchange (NYSE) that it intends to bring the share price of its common stock and the average share price of its common stock for 30 consecutive trading days above $1 ... Fannie Mae is currently working with its conservator, the Federal Housing Finance Agency (FHFA), to determine the specific action or... (PR Newswire)
Council approves executive pay raise Nov 27, 2008
Some view this item the same as giving a bonus to the executives that failed Fannie Mae, Lehman Brothers and GM.. The City Council majority, however, emphasized that the important part of this resolution was the formal compensation guidelines for the city s department heads. (Half Moon Bay Review, CA)
Do the massive US bailout packages seem to be working? Nov 27, 2008
It announced it would directly buy $500 billion worth of mortgage-backed securities backed by Fannie Mae (FNM), Freddie Mac (FRE), and Ginnie Mae, as well as $100 billion of the corporate debt of Fannie, Freddie, and the Federal Home Loan Banks. Warnings of Risk. (India Times)
Holding A Candle To Buffett Nov 27, 2008
Holding concentrated positions in good franchises like Goldman Sachs (nyse: - - ), Google and Apple turned dangerous, even fatal for Lehman Brothers (otcbb: - - ), Fannie Mae (nyse: - - ) and Freddie Mac (nyse: - - ), and near fatal for Hartford Financial (nyse: - - ) and Citigroup. Particularly hard hit were the quantitative operators, something you can't accuse Buffett of practicing. (Forbes -- Markets)
Meltdown 101: Why Fed Can Easily Offer Money Help Nov 27, 2008
A: In the latest in a series of bold moves, the central bank announced on Tuesday that it would purchase up to $600 billion in mortgages and mortgage-backed securities investments, in other words that are either owned or guaranteed by financial giants Fannie Mae, Freddie Mac and Ginnie Mae, and the Federal Home Loan Banks. The Fed said it would also create a new program to make up to $200 billion in loans to institutions where the collateral is various types of consumer loans ranging from credit... (ABC News -- Wire)
Mortgage Rates Dip for Fourth Straight Week Nov 27, 2008
The Fed's move to spend up to $600 billion buying mortgage-backed securities owned or guaranteed by big mortgage financing titans Freddie Mac and Fannie Mae caused rates to immediately drop by a half-point. Economists say the new Fed program should help keep rates low as the government increases efforts to battle the credit crisis. (ABC News -- Wire)
Credit Still Crunched Even as Mortgage Rates Fall Nov 27, 2008
As the rate on a 30-year Fannie Mae mortgage security fell to about 5. 09 percent on Wednesday down from Tuesday and from over 5. (ABC News -- Wire)
4 reports reveal battered economy Nov 27, 2008
The Fed also announced that it will spend $500 billion to buy mortgage-backed securities guaranteed by mortgage giants Fannie Mae and Freddie Mac and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks. This would greatly expand an initial modest effort announced in September with the goal of creating increased demand for mortgage-related assets. (Honolulu Advertiser)
At last, a consumer bailout Nov 27, 2008
The immediate beneficiaries aren't ordinary people struggling with money problems; they're Fannie Mae, Freddie Mac and institutions that hold securities ---- investments, in other words ---- backed by consumer loans ... The Federal Reserve will pay up to 100 billion up to take over debt held by mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks ... For example, Fannie Mae and Freddie Mac buy mortgages on the secondary market ---- they acquire existing mortgages... (North County Times)
Letters to the editor Nov 27, 2008
I don t suppose that when we talk about wanting our children to grow up to succeed in the modern economy with the best education we can give them that we would expect them someday to be running companies similar to Freddie Mac, Fannie Mae or AIG, companies that everyone loved until the bottom gave way and everything fell apart; were they not fully prepared for the economy of the future. In 1958, I was being educated in my hometown of Glasgow, Scotland and I was being prepared for the economy of... (Wellesley Townsman, MA)
Fed, Treasury Announce Plan to Jumpstart Lending Nov 27, 2008
REALTOR Magazine Online: The real estate professional's business support tool. YOUR INTERACTIVE MAGAZINE REALTOR.ORG/realtormag. (Realtor Magazine Online)
On Your Mind Nov 27, 2008
Barney reportedly has his male lover on the Fannie Mae board of directors ... The MM failed to disclose the root causes of the economic meltdown, namely, Fannie Mae and Freddie Mac, as long protected by Democrats from numerous attempts at regulation. (Sierra Vista Herald, AZ)
MORTGAGES: The goal is to lower rates Nov 27, 2008
By Stephanie Armour, USA TODAY The government on Tuesday said it will buy up to $100 billion in mortgages held by Fannie Mae and Freddie Mac and the Federal Home Loan Bank, and it will purchase up to $500 billion of mortgage securities backed by the housing giants and Ginnie Mae. The goal: lower interest rates on loans for home buyers by directly buying mortgages. (USA Today -- Money)
Managing the crisis Nov 27, 2008
Efforts by central banks to avert the sub-prime contagion failed miserably and in the space of a couple of weeks Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, Wachovia, AIG and others were either sold, went into liquidation or nationalised. Furthermore, an unprecedented bail-out rescue package has been proposed by the US Treasury and the Federal Reserve, where they plan to pump US$700-billion to support the ailing banking system. (iAfrica.com)
$800 billion in new programs aimed at loosening credit Nov 27, 2008
The Fed also announced it will spend $500 billion to purchase mortgage-backed securities guaranteed by mortgage giants Fannie Mae and Freddie Mac, and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks. This would greatly expand an initial modest effort announced in September in which Treasury spent $26 billion to purchase mortgage-backed securities. (Republican-American)
Government bailout hits $8.5 trillion Nov 27, 2008
To stimulate lending, the Fed said on Tuesday it will purchase up to $600 billion in mortgage debt issued or backed by Fannie Mae, Freddie Mac and government housing agencies ... Sept. 7: The Treasury takes over mortgage giants Fannie Mae and Freddie Mac, putting them into a conservatorship and pledging up to $200 billion to back their assets. (San Francisco Chronicle)
7 comments Nov 27, 2008
Why weren t they dispatched as were the executives at Fannie Mae, Freddie Mac, and AIG. As in the case of Zelig, what on earth is this man doing there. (Human Events Online)
Gov't Still Lacks Clear Crisis Plan Nov 27, 2008
After Lehman's failure, the central bank and Treasury quickly moved to save insurance giant AIG. () They've put Fannie Mae () and Freddie Mac () into receivership and have rescued Citi. They've also helped shepherd ailing banking giants Washington Mutual and Wachovia () into the arms of stronger rivals. (Investors Business Daily)
What The Citi Deal Doesn't Do Nov 27, 2008
It also took over Fannie Mae (nyse: - - ) and Freddie Mac (nyse: - - ), at a cost of $200 billion. Before the Citigroup rescue, the cost so far from the financial crisis has been $5 trillion, according to CreditSights, including $1 trillion of short-term loans from the Federal Reserve, a $1. (Forbes -- Business)
START THE PRESSES Nov 27, 2008
Treasury Secretary Hank Paulson said the government will buy up to 100 billion in direct debt from government-controlled mortgage lenders Fannie Mae and Freddie Mac ... He said the aim is to replace at least 600 billion in high-interest Fannie Mae and Freddie Mac bonds with T-bills that had interest as low as zero at times. (New York Post -- Business)
Home care workers vote for union-negotiated pact Nov 26, 2008
Hartford Financial officer to be CFO Fannie Mae named David Johnson to be its chief financial officer and executive vice president, effective immediately ... His predecessor at Fannie Mae, Stephen Swad, left in August and was temporarily replaced by David C. Hisey, Fannie's senior vice president and controller. (Boston Globe)
Big spending Nov 26, 2008
In September, the Treasury took over mortgage giants Fannie Mae and Freddie Mac, pledging as much as $200 billion to back their assets. Jobless aid: Last week, Congress approved a three-month extension of expiring unemployment benefits, at a cost of nearly $6 billion. (Boston Globe)
US Fed announces $800bn stimulus Nov 26, 2008
Under the latest rescue plan - which is in addition to the already-announced $700bn bank bail-out - the Fed is to buy up to $100bn in debt from the troubled mortgage giants Fannie Mae and Freddie Mac. The central bank said it would also buy another $500bn in mortgage-backed securities - pools of mortgages that are bundled together and sold to investors. (BBC News -- Americas)
Obama not a ghost of Clinton past Nov 26, 2008
" Last week, the financial markets were a grim, foreboding place. I noted last Friday (see , Asia Times Online, November 21, 2008), how current Treasury Secretary Henry Paulson's decision to suspend the purchase of illiquid mortgage assets focus of the TARP bailout was being reacted to very negatively by the markets; on Thursday, the S&P 500 stock index fell to lows not seen in a decade. With the Bush administration clearly up on deck trying to edge the women and children out of the lifeboats,... (Asia Times Online)
Towards a future Wall Street Nov 26, 2008
However, the existence of Fannie Mae and Freddie Mac, two entirely irresponsible institutions with the implicit backing of the federal government, encouraged the development of a securitized home mortgage market in which the originators neither knew nor cared what happened to the loan after they originated it. Wall Street needed the help of the nation's encyclopedia salesmen and used-car dealers, acting as "mortgage brokers", to perpetrate the disaster in subprime and other securitized... (Asia Times Online)
Council approves executive pay raise Nov 26, 2008
Some view this item the same as giving a bonus to the executives that failed Fannie Mae, Lehman Brothers and GM.. The City Council majority, however, emphasized that the important part of this resolution was the formal compensation guidelines for the city s department heads. (Half Moon Bay Review, CA)
US unveils new $800 billion plan to loosen credit Nov 26, 2008
As much as $100 billion of this program will go for purchases of assets from mortgage giants Fannie Mae and Freddie Mac, and the Federal Home Loan Bank. The rest will be used to buy mortgage-backed securities, the now-infamous pools of mortgages some of them shaky that were bundled together and sold to investors. (Christian Science Monitor -- USA)
Meltdown 101: Why no direct bailout to consumers? Nov 26, 2008
The immediate beneficiaries aren't ordinary people struggling with money problems; they're Fannie Mae, Freddie Mac and institutions that hold securities -- investments, in other words -- backed by consumer loans ... The Federal Reserve will pay up to 100 billion up to take over debt held by mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks ... For example, Fannie Mae and Freddie Mac buy mortgages on the secondary market -- they acquire existing mortgages from... (Sioux City Journal, IO)
Can government keep spending? Most economists say yes Nov 26, 2008
Most economists say yes. Latest Political Stories. (Anchorage Daily News)
Yet another bailout of a too-big bank Nov 26, 2008
Fannie Mae and Freddie Mac, the quasi-public entities that back mortgages, have themselves been bailed out separately, as has the giant insurance company AIG.. Congress is currently wrangling over whether to bail out the Big Three automakers. (Carlisle Sentinel, PA)
U.S. moves to thaw credit for consumers Nov 26, 2008
The Fed also announced that it would spend $500 billion to purchase mortgage-backed securities guaranteed by mortgage giants Fannie Mae and Freddie Mac and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks. Video. (MSNBC -- Politics)
