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….

(more…)

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November 12, 2009. Tags: , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, Wall St. 5 comments.

Confucious Say…

If you can’t find the book

you want,

You’re probably shopping

at the….



wongfookhingbookstore

November 12, 2009. Tags: . English Literature, Entertainment, Fiction. Comments off.

Market Mover Thursday: Weekly Jobless Claims; IMF director says UE will continue to rise for next 10-11 months

wall_st_bear_smallHere it is: Week ended 11/7 weekly jobless claims 502,000

4 week moving average is 519,750 (they r xcited that it is the lowest 4 wk avg since 11/29/08 HA! Maroons! it is as low as the crisis and that is good? we should have that number HALVED already. NO GROWTH ON THE HORIZON)

Continuing claims fell to 5.631 million for week ending 10/31.

Have to LOL at Steve Liesman, he is saying most economists think once we get down to 400k, 460k that will mean we are creating jobs’ OMG they are clueless. Where are the jobs coming from Steve? What capital investor wants to roll the dice with this POTUS and Congress? In this oncoming tax/regulation tsunami in 2010?

Jimmy Pethokoukis says UE is going to 11-12% see his column here

____________________________

data release at 8:30am EST

Vodpod videos no longer available.

CNBC:

The economy is growing but the crisis is not over, as unemployment is likely to continue rising for the next 10 to 11 months in developed countries and in some of the developing ones, Dominique Strauss-Kahn, managing director of the IMF, told CNBC Thursday

“I think that recovery is coming back, …Even so, the crisis is not over,” he added.

..One of the big changes the crisis has brought is the fact that Americans have increased their savings rate but “the bad news is that then we have to find some other engine for growth,” Strauss-Kahn said.

Turning to emerging economies for a shift to a domestic-led growth model will help to compensate for the slower increase in consumption in the US, and this has already begun to happen, he said, noting China’s measures to stimulate its own economy during the meltdown…

And they are all SHOCKED the US Dollar has not collapsed, doesn’t sound like our friend does he?

Meanwhile, the dollar has resisted the crisis very well as most people in the world still believed it was the safest way to keep their money, so in the immediate future the greenback’s role will not decrease, Strauss-Kahn predicted.

“What I’m surprised is that the dollar has been very resilient during this crisis; most of economists could have expected, because the crisis originated in the US housing market, that the dollar would finally collapse. It didn’t happen,” he said…

November 12, 2009. Tags: , , , , . Economy, Finance, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.

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