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Thread: Fannie wants 5 billion more.

  1. #21
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by PeteEU View Post
    Look at it this way... if it was not Fannie/Freddie then it would be the banks directly you would be bailing out hand over fist.
    We're bailing them out, too, at an alarming rate as well.
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  2. #22
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by AdamT View Post
    It wasn't F&F that allowed them to get the loans of their books -- it was collateralized debt obligations (CDOs). Fannie and Freddie were killed by the falling real estate market -- not by subprime mortgages that they backed. This is a myth perpetuated by right wing pundits.

    Fannie Mae and Freddie Mac were victims, not culprits - BusinessWeek

    Give this a read if you want to understand how the meltdown happened:
    Understanding the Securitization of Subprime Mortgage Credit --Federal Reserve Bank of New York

    Incredibly, republicans are presently trying to kill the agency tasked with correcting many of these errors.
    So are we just ignoring the widespread foreclosure rates - and the reduced values of homes?

    You know - when a bank buys a home-loan in a bank-to-bank deal they're expecting ot profit from it future wise. when that home is suddenly worth less than ti was before they've actually lost money on the deal and need to make it up elsewhere. (just one thing that's broken).

    It's business - and F&F were just as guilty of dirty business.
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by Aunt Spiker View Post
    So are we just ignoring the widespread foreclosure rates - and the reduced values of homes?

    You know - when a bank buys a home-loan in a bank-to-bank deal they're expecting ot profit from it future wise. when that home is suddenly worth less than ti was before they've actually lost money on the deal and need to make it up elsewhere. (just one thing that's broken).

    It's business - and F&F were just as guilty of dirty business.
    You lost me there.

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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by AdamT View Post
    You lost me there.
    I'm lost, too - I think I misread your post. Oops - sorry
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  5. #25
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by 1perry View Post
    i'll ask again, why are we not forcing these fraudulent loans back on to those who sold them in the first place?

    washington - mortgage finance giant fannie mae said it would ask for an additional $5.1 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.

    The largest u.s. Residential mortgage funds provider on friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.

    Including the latest funding request, fannie mae has needed $104 billion in government capital injections since the u.s. Treasury seized control of it in 2008 during the financial crisis. Fannie mae has paid back $14.7 billion in dividends.


    $104 billion and who has been held accountable?

    news headlines

    loans made in the past two years have been more profitable for fannie mae than loans made during the housing boom in preceding years.

    imagine that.
    go to barney frank, he will be more than glad to help them. Let the government help them again. What does that saying go?? A sign of insanity is to do the same thing over and over again.
    Last edited by Red Crow; 08-05-11 at 07:35 PM.
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by Harry Guerrilla View Post
    Nearly all of the money loaned to banks was paid back with interest.
    What more do you want?

    Which people at Fannie and Freddie should be punished and how?
    We took on a ton of the bad loans that the banks were still holding. There is no attempt at getting any of this money back even though the law states they must take them back. (or at least a good portion of them)

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    Re: Fannie wants 5 billion more.

    Give 5 billion to each household that makes under $60K a year. Put money back into the economy.
    CORPORATE GREED AND UNION GREED
    DEMOCRATS AND REPUBLICANS
    DESTROYING THE BEST OF AMERICA ONE DAY AT A TIME

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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by AdamT View Post
    It wasn't F&F that allowed them to get the loans of their books -- it was collateralized debt obligations (CDOs). Fannie and Freddie were killed by the falling real estate market -- not by subprime mortgages that they backed. This is a myth perpetuated by right wing pundits.
    First off I'm not placing blame in any one area. There is plenty to go around. I'm sure you've seen I've stated many times that it's criminal the way we are allowing G.S. (and others off the hook).

    That said, the article is full of caca. From your article.

    Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

    The facts of the matter.

    • 1999, 09. Fannie Mae eases credit requirements for subprime loans. This was done to help low-income consumers purchase homes, and it further encouraged weak borrowers to obtain home loans.

    I can provide plenty of sites to verify this.

    Going further down the timeline.

    • 2002. Fannie Mae and Freddie Mac start purchasing large amounts of subprime mortgages.

    Economics of Crisis: The Great Contraction: Timeline of Events

    From your article again....

    Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion.

    Yes, the amount "originated". A totally worthless thing to note. It is the part that should give us an out but isn't though. They were not the originators of these loans BUT as I noted originally and the link I provided shows, they were indeed buying up these "bad" loans.

    Banks that originated fraudulent loans were supposed to be on the hook for these loans. We are not forcing them to. Why not?

    Give this a read if you want to understand how the meltdown happened:
    Understanding the Securitization of Subprime Mortgage Credit --Federal Reserve Bank of New York
    The Fed bank of NY was Timmy Geithners baby and they aren't about to accept any of the blame.

    Incredibly, republicans are presently trying to kill the agency tasked with correcting many of these errors.
    Explain to us how this is happening.
    Last edited by 1Perry; 08-05-11 at 07:56 PM.

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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by 1Perry View Post
    First off I'm not placing blame in any one area. There is plenty to go around. I'm sure you've seen I've stated many times that it's criminal the way we are allowing G.S. (and others off the hook).

    That said, the article is full of caca. From your article.

    Start with the most basic fact of all: virtually none of the $1.5 trillion of cratering subprime mortgages were backed by Fannie or Freddie. That’s right — most subprime mortgages did not meet Fannie or Freddie’s strict lending standards. All those no money down, no interest for a year, low teaser rate loans? All the loans made without checking a borrower’s income or employment history? All made in the private sector, without any support from Fannie and Freddie.

    The facts of the matter.

    • 1999, 09. Fannie Mae eases credit requirements for subprime loans. This was done to help low-income consumers purchase homes, and it further encouraged weak borrowers to obtain home loans.

    I can provide plenty of sites to verify this.

    Going further down the timeline.

    • 2002. Fannie Mae and Freddie Mac start purchasing large amounts of subprime mortgages.

    Economics of Crisis: The Great Contraction: Timeline of Events

    From your article again....

    Look at the numbers. While the credit bubble was peaking from 2003 to 2006, the amount of loans originated by Fannie and Freddie dropped from $2.7 trillion to $1 trillion.

    Yes, the amount "originated". A totally worthless thing to note. It is the part that should give us an out but isn't though. They were not the originators of these loans BUT as I noted originally and the link I provided shows, they were indeed buying up these "bad" loans.

    Banks that originated fraudulent loans were supposed to be on the hook for these loans. We are not forcing them to. Why not?



    The Fed bank of NY was Timmy Geithners baby and they aren't about to accept any of the blame.



    Explain to us how this is happening.
    That's true, F&F did purchase securities backed by subprime and Alt-A loans going back some time. But the GSE's had much higher standards than the private banks they were competing with. As underwriting standards eroded leading into the real estate bust, F&F's share of the subprime and Alt-A mortgage was essentially cut in half. Why? Because they wouldn't purchase the absolute garbage that private banks were buying up.

    I'm not saying that they didn't contribute to the problem, but I think that a lot of people assign them way more blame than they deserve.

  10. #30
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    Re: Fannie wants 5 billion more.

    Quote Originally Posted by AdamT View Post
    That's true, F&F did purchase securities backed by subprime and Alt-A loans going back some time. But the GSE's had much higher standards than the private banks they were competing with. As underwriting standards eroded leading into the real estate bust, F&F's share of the subprime and Alt-A mortgage was essentially cut in half. Why? Because they wouldn't purchase the absolute garbage that private banks were buying up.

    I'm not saying that they didn't contribute to the problem, but I think that a lot of people assign them way more blame than they deserve.
    That is flat false. In 2007 F&F and Fed Home Loan banks underwrote 90% of the home mortgage market, at a time when almost no one else was underwriting. They owned almost all the paper written at that time. F&F and the Federal Home Loan banks underwrote an estimated 5.5 trillion in home mortgages from 2004 to present.

    Fannie, Freddie and FHLB Now Provide 90% of Home Loans
    Regional Banks Will Pump Another $100 Billion into Mortgages
    Fannie, Freddie and the Fed Loan $400 Billion to Financial Markets

    Take the links for what they are worth and do your own research into just how deep the government guarantees were and how much govt intervention went into the home market.

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