Freddie Mac hits up Treasury for another chilly 30b….

Friday night news drop…if we can’t get the frakin HOLC we need to get out of this housing morass when we already own Fannie and Freddie and are still pumping billions into them..well, then why even bother with a stimulus, just go to Clan of the Cave Bear economic models….

clan

CNBC via AP:

Mortgage finance company Freddie Mac said Friday it will need an additional $30 billion to $35 billion in government aid as it copes with losses on loans the company backed during the U.S. housing bubble.

-snip-

It comes on top of the $13.8 billion the company received last year after it was seized by the government. Sibling company Fannie Mae has yet to request any such aid but has warned it may need to do so.

Federal regulators seized control of both companies in September after they faced mounting losses from the housing market’s bust. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company…

hannahcavebear1

We need the frakin HOLC and we need it like a year ago….

More dithering on what to do, what to do, while property values continue to decline at an accelerated pace, signaling the need for an intervention to all but the blind banks who are fighting a losing battle…let’s just put on our Darryl Hannah makeup and be done with it…

Congressional Dems are going all “mau mau on CBO for scoring the stimulus unfavorably” (Kudlow video fascinating debate on the stimulus tonight with Dean Baker here)…they are having it rescored….the markets (and MiM) expected PEBO team to hit the ground running with a plan …for weeks we have seen them gathering in a gaggle of genius….but nothing until February 20th….no signal to the markets for cap gains or dividend treatment in 2010…nada…hand me the black eyeliner….

housinginyourhands

The banks have gotten themselves into this mess and sadly taken all of us down with them…In fact, their obstinacy in modifying mortgages will result in a bigger hit for them as Dems legislate bankruptcy cramdowns of mortgages….if they expect continued recapitalization form this Congress I hope to hexx they are ready to write off some principal on these loans for underwater homeowners…in CA, FL NV and AZ…a-hem…

The Obama administration last week said it would “commit substantial resources of $50-$100 billion to a sweeping effort to address the foreclosure crisis,” through a variety of initiatives, including the TARP program, whose funding thus far has gone entirely to propping up banks.

Depending on whom you ask, that’s either way too much money or far too little.

“I think it’s too much. What would you do with it?” says Christopher Mayer, a real estate expert and vice dean at Columbia University’s business school, who recently testified before the House Financial Services Committee’s hearing on using TARP funding for foreclosure relief.

“A $100 billion is not a lot, given what the federal government is on the hook for,” says Edward Pinto, who was chief credit officer at Fannie Mae and now runs a consultancy. “The meter is running and it is going to increase.”

Pinto estimates foreclosure losses could be as high as $800 billion over the next 4-5 years.

Many plans, but finally someone is forcing action, and Frank has Maxine Waters D-CA who was burned by Paulson and Kashkari on TARP One at the lead with legislation to force the implementation of Sheila Bair’s FDIC model, via CNBC:

“Mortgage loan modifications have been an area of intense interest and discussion for more than a year now,” FDIC COO John F. Bovenzi recently told Congress. “Meanwhile, despite the many programs introduced to address the problem, it continues to get worse.”

-snip-

In addition there is no shortage of new proposals, from government loan guarantees or outright purchases of mortgages to dramatic changes in bankruptcy laws to incorporate home foreclosure.

-snip-

The “Systematic Foreclosure Prevention and Mortgage Modification Act of 2009” would seek to modify 2.2 million mortgages, about half of the non-GSE loans expected to become a problem in 2009. Under the plan, the government would share up to 50-percent of the loss, if the loan redefaults.

January 23, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Entertainment, FDIC, Film, Finance, Foreclosures, Hillary Clinton, Housing, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St.

2 Comments

  1. BREAKING ALERT: WH-OMB releases budget forecast adds another 2 TRILLION to deficit- from 7 T to 9 Trillion « Moderate in the Middle replied:

    […] and Freddie are waiting to ask for 30 billion more until after this deficit number was released (their last money grab was a mere 8 months ago), wouldn’t want to frak up all the projections in the same report would we? Might lead the […]

    Like

  2. » Freddie Mac hits up Treasury for another chilly 30b…. replied:

    […] beeha wrote an interesting post today onHere’s a quick excerpt Friday night news drop…if we can’t get the frakin HOLC we need to get out of this housing morass when we already own Fannie and Freddie and are still pumping billions into them..well, then why even bother with a stimulus, just go to Clan of the Cave Bear economic models…. […]

    Like

%d bloggers like this: