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….


Listen to this guy parse like the wind! Our previous post on the imminent need to rescue the FHA here. Our posts going back to our blog creation in December 2008 on the HOLC plan which WOULD HAVE ended the ENDLESS housing bailouts in one fell swoop (and boosted the economy) back in 2007 when Hill proposed it here

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Let’s be honest can we? Hillary was absolutely right on this. She first raised the issue in 2005. By 2007 she was actively beginning to campaign yes, and she raised several housing options that would have done what NEEDED to be done AT THE RIGHT TIME. Here is Megan McArdle getting it WRONG on housing. Is what they are doing now better than HRC’s plan? Uhm HELLS NO! They are spending trillions, stopping the market from correcting and STILL NOT MANAGING TO HELP THE HOMEOWNERS!!!

Dick Armey who NEVER admits when he was wrong, (never ever), bashed Hillary up and down for her plan back in 2007 on Kudlow. What has Dick Armey done to help housing? He glommed onto our tea parties pretty damned quick. Why not ADMIT you were WRONG about Hillary’s plan Dick? Larry has admitted he was UTTERLY WRONG ABOUT HOUSING, man up Dick. We are spending literally TRILLIONS more as a result of not having done the right thing in 2007 or sooner:

Obama and McCain were against her plan. Obama was funded by folks like Credit Suisse the largest subprime lender in the US then, and MAC was doing his free market economy schtick that he acknowledged he didn’t really understand.Inf act Obama was to the RIGHT of MAC on housing. MAC called for forms in the post office to have a principle forbearance on all loans. It is happening now anyway via HAMP, but in a non effective manner that pads the banks with fees and slows the inventory and correction anyway,. sigh.

I love the free markets too but I saw what was happening here on the ground, in the middle class, the fools on tv kept saying we have never had a consumer led recession waahh wahhh wahhh, well the consumer collapse and the resultant pressure on financials DID lead us into a WHOPPER of a recession and its inception was HOUSING. It’s relaunch the second leg down will again be HOUSING. These guys never learn.

So here we sit and prepare for ANOTHER 50 Billion dollar bailout, this time of ANOTHER government HOUSING AGENCY, yet the MAJORITY of the homes in trouble have had absolutely no action taken and there will be a double dip recession as a result. The consumer cannot recover with housing continuing to collapse.

more about “FHA Commissioner on audit results…“, posted with vodpod
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November 12, 2009. Tags: , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Hillary Clinton, Housing, Obama Administration, Politics, Wall St.

5 Comments

  1. HOUSING UPDATE – Financial Services Cmte asking for your experiences with JPMorgan Chase ahead of hearing tomorrow… « Moderate in the Middle replied:

    […] more time – FAN FRED FHA back all these loans anyway, the TAXPAYERS are ALREADY on the hook. Not working through mods quickly with writedowns means walkaways continue apace. They are […]

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  2. HAMP applicants Alert – Financial Services Cmte asking for your experiences with JPMorgan Chase ahead of hearing tomorrow… « Moderate in the Middle replied:

    […] more time – FAN FRED FHA back all these loans anyway, the TAXPAYERS are ALREADY on the hook. Not working through mods quickly with writedowns means walkaways continue apace. They are […]

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  3. Housing: FINALLY! Some data on the trial mods! Treasury reports more than 27% of homeowners in trial modification are delinquent… « Moderate in the Middle replied:

    […] AARRRGLE! This Admin is so frakking enamored of everything ELSE FDR did why not this? Oh yeah HRC suggested it in 2007 and 2008, thus Obama won’t do it. Frakkers. Their next ingenius plan will be the […]

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  4. They’re baaaack: FHA prepares to raise premiums to boost reserves… « Moderate in the Middle replied:

    […] When last we visited with the FHA they were swearing up and down they would not need a bailout and were expanding their loan programs hand over […]

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  5. » Update: Fannie/Freddie warn of more losses; FHA Commissioner on … » Mortgage Insurance replied:

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