Freddie Mac hemorrhaging
Today, Freddie Mac announces their first quarter numbers, reporting that with a $6.7 billion loss and requests that the Treasury Department issue a $10.6 billion bailout. The Treasury lifted the $100 billion limit on Freddie Mac last December, indicating there is room for more money to be handed out.
Between Freddie Mac and counterpart Fannie Mae, a total of $137.5 billion has already been received from the Treasury since it took over both companies in 2008.
Although recent signs point to a real estate recovery, politicians continue to appear to be indecisive about how to handle the situation ranging from more regulation to abolishing Fannie and Freddie altogether.
Sticking point for both Republicans and Democrats
New Jersey Representative Scott Garrett (R) said, “I find it mind-blowing that Democrats reject the opportunity to engage in a serious conversation about reforming the entities that are clearly the government’s biggest toxic liabilities.” Garrett continues his criticism saying, “Taxpayers are continually losing money on these failed enterprises, and at some point, we must say enough is enough.”
Massachusetts Representative Barney Frank (D) has called for a complete abolishment of Fannie Mae and Freddie Mac which of course means he would replace it with a system of his own.
ABC News reports that “thus far the administration’s only action has been the April 14 release of a series of questions for public comment on what to do with the mortgage giants.”
It is unclear what the next move is, as Timothy Geithner, Secretary of the Treasury notes that no major changes will be made in the next year.
CC Licensed image courtesy of stuartpilbrow via Flickr.com.
Joe Loomer
May 6, 2010 at 8:25 pm
The Kings and Queens of rhetoric are fighting their battles as the serfs and paupers suffer in this feudal system. Truly amazing how much political banter and posturing can be pulled out of every little nuance and gesture. Ain’t change grand! Doesn’t look any different to me.
Navy Chief, Navy Pride
Jonathan Benya
May 7, 2010 at 3:48 pm
Just another day in Washington it seems. I wonder how much complete indecision here is costing the American taxpayers? I don’t really have an opinion on what should or shouldn’t be done, but aren’t the politicos getting paid to actually work on this issue rather than just sit and watch on the sidelines?
Missy Caulk
May 8, 2010 at 11:26 am
My bank was closed my FDIC that held my loan and the loan is now overseen by Freddie. The now closed bank told us to mail our May payments there. I called them and said, NOT without a loan number.
Finally got the loan number on May 1st and mailed it. I always mail it early to hit their account on May 1st.
Let’s see today is the 8th and it still has not hit my bank account. In 28 years of home ownership I have never been late, and was NOT happy about the loan being overseen by their processing company.
I heard the gov’t controls 96% of all home loans now….have you heard that? Scary if true.