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« Coliseum authority | Main | Light blue blues »

Feb 27, 2010

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RE: Fannie Mae:

After the next government payout, Fannie Mae’s borrowings will carry an annual dividend cost of $7.6 billion, which the company said it will repay by borrowing more money from the Treasury. “This amount exceeds our reported annual net income for all but one of the last eight years, in most cases by a significant margin,” the company said.

Is there a rational reason to continue with this type of enterprise when it has racked up so much continued failure?

Abner Doon

"Is there a rational reason to continue with this type of enterprise when it has racked up so much continued failure?"

The real estate idustry of the US is now completly dependant on a money losing enterprise keeping it afloat of emailed money from the treasury.

We are skrewing our kids so our nieghbors can refinance and financial institutions can unload crap onto the public balance sheet.

Fannie is the lender of last resort.

We have sacrificed our economic morality for a more pleasant present.

Lex

What's worse, up until the end of last year, Fannie and Freddie had a combined authorized cap of $400B ($200B each) for these things. Congress quietly eliminated the cap. The obligations F&F (and, by extension, taxpayer) can now take on are at least theoretically unlimited, while bank stock- and bondholders once again evade having to take a hit on crap they never should have financed in the first place.

God Bless America.

Lex

taxpayerS

jmb27

Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.

Here is an example of what I am talking about:
Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."

The Center for Responsible Lending says YSP "steals equity from struggling families."
1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

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