Fannie Mae and Freddie Mac begin to unload mortgages




The Mortgage Colossus that is Fannie Mae And Freddie Mac are too being unloading thousands of Distressed Mortgages, Ordered by the Treasury Department following the announcement to reduce their amount of  troubled mortgages.

Despite the arguments on both sides in Congress as to how they would handle the two lenders, the action “will help expedite the wind down of Fannie Mae and Freddie Mac,” according to a statement released by the Federal Housing Finance Agency.

“We are taking the next step toward responsibly winding down Fannie Mae and Freddie Mac, while continuing to support the necessary process of repair and recovery in the housing market,” said Michael Stegman, an attorney for the Secretary of the Treasury for Housing Finance Policy.

“As we continue to work toward bi-partisan housing finance reform, we are committed to putting in place measures right now that support continued access to mortgage credit for American families, promote a responsible transition, and protect taxpayer interests.”

The Two, now government backed, lenders are now required to cut their mortgage portfolios 15% each year till they reach $250-billion in mortgage securities. $581-billion is the current total Freddie Mac controls and Fannie who is at %672-billion, and gaining more failed home loans each day

Both giant lenders, which purchase about 80% of all current U.S. mortgages that are sold by banks and other mortgage lenders, were taken over by the federal government at the height of the financial crisis. The Federal Housing Finance Agency was formed by the Obama administration to oversee day to day operations, and have been bailed out by the U.S. tax payer.

Agreements worked out by the federal government took over the majority of preferred stock invested in Fannie Mae and Freddie Mac. New agreements replace the 10% dividend payments made to Treasury for investing in the two firms.

The government also says that the action will make “sure that every dollar of earnings that Fannie Mae and Freddie Mac generate will be used to benefit tax payers for their investment in those firms.”

Previous articleHome builder confidence on the rise
Next articleHousing Market increased this Summer

VT Money is part of the Veterans Today Network (VTN). VTN is a full service media, information, marketing and promotion network managed by dedicated people that serve the U.S. Military Veterans Community

With over 2,000,000 plus unique visitors with millions more of page hits per month, our media network is now the largest network for U.S. Veterans in the United States of America.

As we continue forward, our people from all over the world work to bring dynamic interactive content, information, services, and products to serve our U.S. Military Veterans market contributing to the greater good of our dynamic community.

Created in 2003, the network has each and every year as it gained acceptance in this niche marketplace and now is the largest, brightest and most dynamic in the USA.

So click around the links and access our network of U.S. Military and Veterans sites. We stand proud of promoting our network that stands for and supports U.S. Military Veterans.

Comments Closed