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Freddie Mac lost almost $26 billion last year, ominous news for taxpayers who are footing the bill to rescue the mortgage finance company and its sibling Fannie Mae.
Freddie Mac, which has lost a total of almost $80 billion since the housing crisis started in 2007, is bracing for more pain. The McLean, Va.-based company said a record 4 percent of its borrowers are at least three months behind on their payments and facing foreclosure.
Its chief executive, Charles Haldeman, warned Wednesday of a "potential large wave of foreclosures" still to come
This is a major problem for the federal government, which seized control of Freddie and Fannie in September 2008. The two companies have already siphoned $111 billion from the government to stay afloat. That number is expected to hit $188 billion by fall 2011.
And while Freddie Mac didn't ask for any more bailout money last quarter, the company said it will likely need more financial aid and might never repay it.
Are FreddieNotes securities guaranteed by the federal government?
No. FreddieNotes securities are obligations of Freddie Mac only. FreddieNotes securities, including any interest on FreddieNotes securities, are not guaranteed by, and are not debts or obligations of, the United States or any agency or instrumentality of the United States other than Freddie Mac.
Originally posted by burdman30ott6
Let.Them.Colapse
I honestly don't see why this farce is continuing. Our tax dollars are being siphoned away to protect China and Japan's central banks which heavily invested in these mortgage backed securities over the past 2 decades.
From their own damn website's FAQ section:
www.freddiemac.com...
Are FreddieNotes securities guaranteed by the federal government?
No. FreddieNotes securities are obligations of Freddie Mac only. FreddieNotes securities, including any interest on FreddieNotes securities, are not guaranteed by, and are not debts or obligations of, the United States or any agency or instrumentality of the United States other than Freddie Mac.
Either this is bullcrap or the government MUST stand up, brush the dirt from their pants, and walk away (bringing all of our tax dollars back with them) from Freddie and Fannie and Let.Them.Fail.
What a pathetic joke.