Yesterday, Wednesday, Feb. 29, 2012, Fannie Mae announced they are asking the government (that’s us folks) for more bailout money. This time they need $4.6 billion. They’ve already received, or are about to receive a total of $117.3 billion in bailouts. When does this stop?
This mortgage giant said they lost “roughly” $2.4 billion dollars from October to December 2011 and need more money to cover their losses.
Last year alone, Fannie Mae’s bailout money totaled around $16.4 billion. Michael J. Williams, Fannie’s president and chief executive said they “continued to grow a very strong new book of business as we have since 2009”. What??
Last November, Freddie Mac, Fannie’s sibling mortgage company asked for $6 billion in extra aid after losing …..$6 billion in their third quarter.
The government rescued Fannie Mae and Freddie Mac in 2008 by covering their losses on soured mortgage loans. Since then, a federal regulator – the Federal Housing Finance Agency (FHFA) has controlled their financial decisions.
FHFA plans to submit a request to the Treasury for $4.571 billion to help out Fannie, once again.
Taxpayers have bailed out both Fannie and Freddie to the tune of $150 billion since 2008. Uncle Sam says that figure could top $269 billion by 2014.
Fannie has its hand in 1 out of every 4 residential mortgages and has reported losses 17 out of the last 18 quarters. The 2014 date doesn’t sound very promising.
Keith A. Gantenbein, Jr. is a Colorado foreclosure defense attorney located in Denver and servicing all of Colorado. He also handles bankruptcies, mortgage negotiations, lender liability, real estate, civil litigation, contracts and landlord/tenant. If you think you will be facing foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure, contact Keith Gantenbein at (303) 618-2122 for a one-hour consultation where he will discuss your situation and go over all your options with you.