bobbyw24
11-08-2010, 06:02 AM
Ron Paul warned:
Recently there have been some encouraging signs that Congress is finally willing to admit what should have been evident two years ago. Even after a $150 billion bailout, Fannie Mae and Freddie Mac are still bankrupt and should be abolished. Indeed Rep. Barney Frank, a longtime champion of Fannie and Freddie has made a few statements alluding to this and I have signed on to a letter asking him to clarify his remarks and hold hearings on this topic. There seems to be a growing consensus in favor of abolishing Fannie and Freddie. This is the good news.
http://www.ronpaul.com/2010-08-22/abolish-fannie-mae-and-freddie-mac-and-replace-them-with-nothing/
By Julie Schmit and Stephanie Armour, USA TODAY
Taxpayer-funded Fannie Mae and Freddie Mac have spent more than $2 billion this year on foreclosed property expenses after acquiring tens of thousands of homes through foreclosures.
The mortgage giants owned more than 240,000 foreclosed homes on Sept. 30, they reported last week. That's about 25% of all lender-owned homes in the U.S., according to RealtyTrac.
Fannie and Freddie, which buy mortgages from lenders and package them into securities to sell to investors, own or guarantee half of all U.S. mortgages. Together, they have more than twice as many foreclosed homes now as they did this time last year, with a combined value of $24 billion.
The U.S. Treasury has invested $148 billion in preferred stock in Fannie and Freddie — and received almost $17 billion in dividends — since taking them over two years ago. Their losses have narrowed, but further Treasury investments are expected. Excluding dividends, the government's cumulative cost could range from $142 billion to $259 billion by December 2013, estimates their regulator, the Federal Housing Finance Agency.
The longer foreclosed homes stay on their books, the larger taxpayers' expenses will be. "Taxpayers are covering their losses. We are the ultimate deep pocket," says Lawrence White, a New York University economics professor.
http://www.usatoday.com/money/economy/housing/2010-11-08-foreclosures08_ST_N.htm
Recently there have been some encouraging signs that Congress is finally willing to admit what should have been evident two years ago. Even after a $150 billion bailout, Fannie Mae and Freddie Mac are still bankrupt and should be abolished. Indeed Rep. Barney Frank, a longtime champion of Fannie and Freddie has made a few statements alluding to this and I have signed on to a letter asking him to clarify his remarks and hold hearings on this topic. There seems to be a growing consensus in favor of abolishing Fannie and Freddie. This is the good news.
http://www.ronpaul.com/2010-08-22/abolish-fannie-mae-and-freddie-mac-and-replace-them-with-nothing/
By Julie Schmit and Stephanie Armour, USA TODAY
Taxpayer-funded Fannie Mae and Freddie Mac have spent more than $2 billion this year on foreclosed property expenses after acquiring tens of thousands of homes through foreclosures.
The mortgage giants owned more than 240,000 foreclosed homes on Sept. 30, they reported last week. That's about 25% of all lender-owned homes in the U.S., according to RealtyTrac.
Fannie and Freddie, which buy mortgages from lenders and package them into securities to sell to investors, own or guarantee half of all U.S. mortgages. Together, they have more than twice as many foreclosed homes now as they did this time last year, with a combined value of $24 billion.
The U.S. Treasury has invested $148 billion in preferred stock in Fannie and Freddie — and received almost $17 billion in dividends — since taking them over two years ago. Their losses have narrowed, but further Treasury investments are expected. Excluding dividends, the government's cumulative cost could range from $142 billion to $259 billion by December 2013, estimates their regulator, the Federal Housing Finance Agency.
The longer foreclosed homes stay on their books, the larger taxpayers' expenses will be. "Taxpayers are covering their losses. We are the ultimate deep pocket," says Lawrence White, a New York University economics professor.
http://www.usatoday.com/money/economy/housing/2010-11-08-foreclosures08_ST_N.htm