FHFA Director Edward DeMarco provided written testimony to the Senate on Thursday.
I caution and advise all that these comments are downright vulgar.
www.fhfa.gov/webfiles/15105/DeMarcoTestimonySBC100809.pdf
A few of the low lights:
*From July 2007 through the first half of 2009 combined losses at Fannie Mae and Freddie Mac totaled $165B. In the first half of 2009, Fannie Mae and Freddie Mac together reported net losses of $47B.
*Since the establishment of the conservatorships, the combined losses at the two Enterprises depleted all their capital and required them to draw $96B. The combined support from the federal government exceeds $1T.
Like I have stated previously:
Uncle Sam is the Housing Market.
tradersutra.blogspot.com/2009/09/uncle-sam-is-housing-market.html
The most atrocious part of all of is that these two nitwit stocks (FRE & FNM) have the nerve to say they are making profits for their shareholders.
The broader implications here have to do with the FHA. This agency at the moment is guaranteeing some 6000 mortgages a day. They are also some 25% of the entire market. If it wasn't for FHA, there wouldn't be a mortgage and or housing market.
Many of the loans the FHA guaranteed in 2007 and 2008 are going bad.The number of FHA mortgage holders in default is 410,916, up 76% from a year ago, when 232,864 were in default.
The whole government policy has been to divert the pain down the road. They knew many of these loans would go bad, they were just in it to stabilize the market.
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