Skip to comments.Freddie Mac reports Q3 loss, asks for $6B in aid
Posted on 11/03/2011 9:20:51 AM PDT by SeekAndFind
WASHINGTON (AP) Government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.
Freddie Mac said Thursday that it lost $6 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010.
This quarter's $6 billion request from taxpayers is the largest since April 2010.
Freddie's losses are increasing mainly for two reasons: Many homeowners are paying less interest because they are able to refinance at lower mortgage rates. And failing and bankrupt mortgage insurers are not paying out as much money when homeowners default.
The government rescued McLean, Va.-based Freddie Mac and sibling company Fannie Mae in September 2008 after massive losses on risky mortgages threatened to topple them. Since then, a federal regulator has controlled their financial decisions.
Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates it could cost up to $51 billion more to support the companies through 2014.
Freddie and Washington-based Fannie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.
(Excerpt) Read more at news.yahoo.com ...
Bonused were well earned, obviously..
Ten executives at Fannie Mae and Freddie Mac receiving $12.79 million in bonuses. How much more for the others?
when does this end?
” The Treasury Department put forward a plan in February to slowly dissolve Fannie and Freddie, although that process could take years. Abolishing Fannie and Freddie would transform how homes are bought and redefine who can afford them.”
RE: when does this end?
It won’t as long as Fannie and Freddie are Government Sponsored Entities.
“The nearest thing to eternal life we will ever see on this earth is a government program” (Ronald Wilson Reagan)
we need a congressional investigation of barney frank et al.
jail would be a good result.
If it’s a good idea, it doesn’t need government help.
What is govt doing in real estate anyway? How is that constitutional?
It's none of your business. Say more and the IRS will deal with you.