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Fannie Mae and Freddie Mac’s federal regulator is renegotiating the companies’ financing plan with the U.S. Treasury Department and may seek an increase to their $400 billion federal lifeline before the end of the year, according to people familiar with the talks. Fannie Mae and Freddie Mac, the largest sources of mortgage money in the U.S., have used $111.6 billion of their $400 billion in backup financing in less than a year. The financing plan instituted for Fannie Mae and Freddie Mac requires them to reduce their $1.57 trillion combined mortgage portfolios by 10 percent annually starting next year and caps their debt issuance at 120 percent of their assets. Officials set up a $200 billion lifeline with the Treasury, which was doubled in May, to keep the companies solvent. If they exhaust that backstop, regulators will be required to place them into receivership.
Originally posted by marg6043
reply to post by David9176
That is OK, they should hired Hillary Clinton as an independent consultant to raise the money, after all she promises to raise 1 trillion to help poor countries, I guess she knows something we don't.
Originally posted by liveandletlive
I can’t help but think that they are only pacifying the masses until something they know is going to happen happens. When you look at the numbers it doesn’t even seem possible to come up with what will be needed to pay back what they have already spent and they keep adding more to the pile.
Originally posted by zz0409
reply to post by Aggie Man
LOL Aggie! They'll keep your tax returns etc for that though. I still owe 2k or so from 20+ years ago and they're still after me. My ex was suppose to pay it in divorce, but doesn't matter.
It'll be BIG deal if they give more bailout $. People are sick of it.
Originally posted by David9176
reply to post by marg6043
I don't think we have time for elections. We lost our chance with the last one. We all should have known when Obama voted for the bailouts...and when his major campaign contributors were banks.
Originally posted by David9176
I find it odd that this didn't get more attention. I guess everyone is so used to seeing their money stolen from them that they no longer care.
The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.