Fannie Mae Taps Treasury For $8 Billion More, Bailout Grows To $112 Billion

I've been covering the Fannie Mae bailout for 3 years and I'll keep posting something on it every quarter until it's over, which I don't anticipate happening anytime soon.

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WASHINGTON, Nov 8 (Reuters) - Fannie Mae , the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat as a shaky housing market widened its third-quarter loss to $5.1 billion.

The government-controlled firm also attributed the deeper cash drain to losses on derivatives used to hedge its exposure to interest-rate swings and on expenses related to home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.

Fannie Mae has now drawn $112.6 billion in bailout funds from the Treasury Department since being seized by the government in 2008 as mortgage losses mounted, and it has returned $17.2 billion to taxpayers in the form of dividends.

"There is certainly a lot of pre-2009 loans that we need to work through and that is certainly driving the credit losses you saw in this quarter and over the last several years," Fannie Mae Chief Financial Officer Susan McFarland told Reuters.

Given the crucial role the two play in U.S. housing finance, owning or guaranteeing about half of all mortgages, the government has pledged unlimited funds to keep the firms afloat through the end of 2012. Combined, they have cost taxpayers around $169 billion.

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Comments

[chunga]

Record bonuses this year for sure...

[George Forfa]

The economic house is getting cold. The solution is not to start burning the furniture. The demands are starting to salvage the house for fuel.

http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/

[Mark McHugh's Mirror]

If Fannie, Freddie did not exist, and the Fed did not have an ultra-easy money policy, the housing boom and subsequent crash would have been much, much, much less severe.

[BillF]

I wonder of it will ever be known how much money is secretly given to the Unions, Muslim Extremists and other friends
of Obama. Then there are the Czars.......

[The voice of reason]

Love the posts by Mark! They could not be more correct and while all of today's problems did not start with this administration, nobody can legitimately claim that anything meaningful has been done to correct the problems, which continue much as before. There are no problems that now exist, which can believably be blamed upon Bush! Today's shortfalls and record expenditures are owned by Obama.

[Texas Dar]

Trust Me, if you feed a cat out side you door, you will have a cat out side your door for life...........

These low life Squm have found a Trough that will keep on giving every few years. The Tax Payers are the greatest people, ya know. They know who ever is in the white house will hand it over.

Opps, unless Ron Paul gets in. Then the Crap will hit the fan.....

[Howard T. Lewis III]

Over the past ten years, using info gleaned from sites such as The Daily Bail, Conspiracy Planet, Smirking Chimp, Whatreallyhappened, and other select sites, I have successfully filled in trustees (of a charitable trust. I am near penniless) on information (omitting site names in favor of featured materials) which logically and regularly mirrors reality on what constitutes coherent explanation of facts logically presented in such a simple manner that observance and reaction should be the only course, by said trustees or anyone else not willing to give their money to crank bookkeepers. They don't listen. They cannot predict. They don't predict. They merely suck in the trustee department and in the 'I'll take that commission' department. Like congress. A mewl a minute. And many injured and sick kids are not going to get the best with these punks in control. I am 5-0 against swine, and will win this thanks to The Daily Bail. These creeps are going by Talmud law and they don't even know it, or do they? I pity the fool.

[john]

Another Absolute Must See:


Secret Fannie Mae Report Confirms Mortgage Fraud

http://www.nytimes.com/2012/02/05/business/mortgage-tornado-warning-unheeded.html?_r=1

[snip]


Until a few weeks ago, Mr. Lavalle, 54, had never seen O.C.J. 5595. He had hoped to get a copy after helping Fannie’s lawyers, at Baker & Hostetler in Washington, complete it. He didn’t.

But after learning about its findings from a reporter for The Times, Mr. Lavalle said, “Fannie Mae, its directors, servicers and lawyers appeared to have an institutional policy of turning a willful blind eye to evidence of mortgage origination and servicing fraud.”

He went on: “When confronted directly with this evidence, Fannie not only failed to correct and remedy the abuses, it assisted in continuing the frauds via institutional practices that concealed fraudulent foreclosures.”...

...Fannie Mae would not say whether it had shared O.J.C. 5595 with its board of directors or its regulator, then known as the Office of Federal Housing Enterprise Oversight. James B. Lockhart III, who headed that regulator in 2006, said he did not recall reading the report. “I probably did not see it as back then foreclosures were not a very big deal,” he said.

But another report published last fall by the inspector general of the Federal Housing Finance Agency, the current regulator, briefly mentioned some of the problems that Mr. Lavalle had raised. (It didn’t mention him by name.) It also faulted Fannie Mae, saying it failed to address foreclosure improprieties that had surfaced years before.

[John]

More from my above Fannie Mae post including PDF of OJC 5595...

http://stopforeclosurefraud.com/2012/02/04/ocj-case-no-5595-confidential-report-to-fannie-mae-regarding-shareholder-complaints-of-foreclosure-fraud-by-mr-nye-lavalle/