Update: Fannie/Freddie warn of more losses; FHA Commissioner on audit results…
Update: Whoomp there it is, regular Karnak we are. WSJ has it:
Fannie Mae and Freddie Mac, already reeling in red ink, are warning they could face additional losses from the weakening condition of mortgage-insurance companies.
Fannie and Freddie together have required capital injections from the Treasury of $112 billion since the government took them over through conservatorship last year. Their need for government support would have been greater without collecting on claims from mortgage-insurance companies. Fannie and Freddie have received payouts of $2.3 billion and $658 million, respectively, from mortgage insurers through September this year.
But as conditions for mortgage insurers deteriorate, Fannie and Freddie have warned that their claims against the insurers may not be paid in full. Fannie set aside $1 billion in loss reserves to cover the possibility that mortgage-insurance companies won’t be able to pay full claims, the company said in a Securities and Exchange Commission filing.
Freddie hasn’t set aside reserves but warned in an SEC filing that “several” of its insurers are “at risk of falling out of compliance with regulatory capital requirements, which may result in regulatory actions that could threaten our ability to receive future claims payments, and negatively impact our access to mortgage insurance for high [loan-to-value] loans.”
Ever since the mortgage crisis erupted two years ago, there have been concerns about the ability of mortgage-insurance companies to pay claims on all policies. In recent weeks, the concerns have taken on added significance as mortgage defaults continue to accelerate far beyond the subprime market into the broader prime market….
Update: GOP proposes amendments for housing tax credit and Dems Johanns and Nelson propose amendment banning ACORN from any federal funding; Unemployment Update: Extension still stalled in the Senate…
10/23 See Update http://moderateinthemiddle.wordpress.com/2009/10/23/unemployment-update-senate-cloture-vote-on-unemployment-extension-next-tuesday/
Update: The Hill:
(…)Since early October, Senate Democrats have been looking to quickly push through a bill that would extend jobless benefits by at least 14 weeks. But Republicans have blocked the immediate consideration of the bill on the Senate floor, objecting because the Congressional Budget Office (CBO) has yet to score it and because a voice vote would preclude GOP amendments….
…Republicans said that a quick vote on the bill would have precluded Isakson’s amendment and others that have bipartisan support. Nebraska Sens. Mike Johanns (R) and Ben Nelson (D) are pushing for an amendment banning all federal funding for ACORN.
Senate Republican Whip Jon Kyl (Ariz.) dismissed Democratic suggestions that Republicans are the “party of no” for holding back support on the bill.
“I think when all is said and done, you’ll see a lot of support for unemployment extension. That’s not the issue,” Kyl told reporters. “The question is how you pay for it. The question is what is the score for it, and whether some other amendments will be allowed.”
Democrats plan to find the extra revenue by extending by 18 months the federal employment surtax, paid by employers and set to expire at the end of the year. The CBO expects the extension of jobless benefits to cost approximately $2.4 billion, according to a Democratic aide.
GOP senators, hoping to avoid a tax extension, are planning amendments that would pay for the prolonged jobless benefits by using bailout or stimulus money, according to a Senate Republican aide.
The Indpendent reports an E Verify amendment is also coming to the floor:
(…)The stalling of legislation to expand unemployment insurance (UI) has little to do with the benefit itself. First, there’s a push to attach an extended homebuyer tax credit to the bill — something the Obama administration is wary of.
But also there’s this: Republicans are hoping to attach a number of amendments related to ACORN and immigration — provisions that have delayed floor action on the UI bill indefinitely, according to the offices of both Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.).
The agreement ends after that.
The Republican amendments include at least two provisions related to ACORN; one related to the E-Verify program; one to pay for the UI benefits with unspent stimulus money; and one providing tax relief….
Update: Courtesy of James McConnell at the Chicago Economic Policy Examiner:
Democratic politicians will hold a press conference Tuesday to blast Republican politicians for holding up legislation to extend unemployment benefits another 14 weeks for the nation’s out of work citizens. Elected representatives in both houses of Congress have agreed on the details of a bill and apparently have the votes to pass it, but Republicans blocked passage by unanimous consent, and continue to offer what Democrats characterize as unrelated amendments…
ginaswo
