gretchen

Defending Fannie Mae and Freddie Mac Hits $160 Million

So what does it cost the government to defend against civil lawsuits for fraud filed by taxpayers against Fannie Mae and Freddie Mac since Uncle Sam took them over?  So far, more than $160 million!  That’s right everyone…$160 million.

According to the Denver Post, the government’s lawsuit defense was a closely guarded secret until just a couple of weeks ago when the companies and their regulator More...

Lance

Mortgage Bailout Tab May Hit $259 Billion

The Denver Post reported on October 22nd that the government projects that the expensive bailout of Fannie Mae and Freddie Mac will cost the taxpayers as much as $259 billion.  That figure would be nearly twice the amount Fannie and Freddie have received so far.  To date, the rescue of the two companies has cost taxpayers $135 billion to the Treasury Department as dividends. 

By contrast, according to the Post article More...

Lance

The Federal Reserve plans to stop buying mortgages by the end of March, and the tax credit for home purchases will end with contracts signed by April 30th.  The pending end of the Federal Reserve’s lifeline to Fannie Mae and Freddie Mac could drive mortgage rates back to the six percent-plus range.  Rates are currently below five percent, and if they jump back up to six percent or more, many people will not be able to afford a home.

 Fannie Mae and Freddie Mac are the largest More...

Peter

The Housing and Economic Recovery Act of 2009 (HERA) is a wide-ranging piece of legislation that strengthens and modernizes the regulation of government-sponsored enterprises Fannie Mae and Freddie Mac, along with the Federal Home Loan Banks.

 Part of HERA imposes sweeping changes in the lending industry, placing greater focus on consumer protection.  HERA aims to assure borrowers are better informed about the loan process and better protected against deceptive lending practices.  More...