Tags: credit crunch, Fannie Mae, Stop Us If You've Heard This One
We had to check the date on this Bloomberg post very, very carefully to make sure it wasn’t off by a year. It is not:
Fannie Mae, the mortgage-finance company under U.S. government control, will loosen rules for homeowners seeking to lower their loan payments by refinancing.
Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice yesterday to lenders posted on the Washington-based company’s Web site. The changes apply to loans that the company owns or guarantees. (Emphasis ours).
The interesting thing about waking up every morning in a different Kafka piece is trying to guess which morning you are in Der Gruftwächter. This seals it. It is today.
Fannie Mae to Loosen Rules for Home-Loan Refinancing [Bloomberg]
Tags: credit crunch, Fannie Mae, Freddie Mac
At 2pm eastern, the Federal Housing Finance Agency is expected to announce a plethora of mortgage gifts to homeowners with Fannie Mae and Freddie Mac loans. This year, gifts will follow the increasingly popular “Reverse Santa” list (not to be confused with the “Double Lehman” formula) which provides relief in the form of federally mandated mortgage price fixing for those who have been caught on the Naughty Debtor list.
Don’t worry. Be happy.
Fannie, Freddie Work on Mass Loan Modification Plan [The Wall Street Journal]
Tags: Daniel Mudd, Fannie Mae, Legislative Sluts, No Means Yes
What’s a girl to do? The opposing pressures of popularity (or coin) and purity have plagued the female sutler since before the Napoleonic campaigns. Certainly, there is a good bit of the camp slop that spills over into the waiting mouths of such campaign hangers-on, and it is often far too tempting to resist, even for the reluctant (but curious) victualer hopeful.
Yes, the first time hurts, but it gets much easier after that. And, $10 million later, you are an old hand. Even the notion of uttering “no” seems a far away and naive fantasy.
So, we sympathize with Harvard Alum Mudd. Crossing the line was probably hard, but once past, your legs are in the air more often and for less and less than you bargained for. Everyone is doing it, you know.
But, when the gig is up, the campaign lost, the soldiers packed up and headed back to their war brides, or fled back to friendly lines to find another, your virtue is long since gone. No daring solider in retreat to pull you up on his horse and gallop back West. And all those promises made by the troops when plunder was plentiful, broken and lost, yes? Were you naive to believe them rather than take cash in advance? Likely. But that’s the least of your worries, your forgone, bonus betrayal. Your forfeited golden parachute. Now the enemy has closed in. And you will face collaborator’s justice. History is written by the victors, and you overstayed your welcome, missed the signs of the turning battle, did you? Or were you just trying to squeeze out the last few tricks before the front lines folded for good?
Former Fannie Mae Chief Executive Daniel Mudd wished he said “no” to more of the things the company was asked to do, he told the Wall Street Journal in an interview. “We were asked — or required — to expand lending, to conserve capital while providing liquidity, to meet housing goals for the underserved, to serve shareholders and homeowners alike,” Mudd told the paper.
Ex-Fannie CEO Wishes he Said “No” More Often: Report [CNBC]
Tags: Clusterfucks, Fannie Mae, Freddie Mac
Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.
Fannie and Freddie began notifying bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, according to the people, who asked not to be identified because the plans are confidential. The purchases would be separate from the U.S. Treasury’s $700 billion Troubled Asset Relief Program.
“For now, they’re under conservatorship and they have to be used to keep the flow of capital going to the housing market,” former Treasury Secretary Lawrence Summers said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff.” “They’re important to maintaining the flow of government finance” and need to be used actively, he said.
I mean, they are kidding, right?
Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets [Bloomberg]
Tags: Fannie Mae, Freddie Mac, Mortgage Rescue, Sarah Palin
It’s unclear if Sarah Palin “[may not have] known what she was talking about when she made her first major statement on domestic economic policy”? Whoa. Now, obviously I’m no econ expert or political strategist for that matter. So I won’t weigh in with an answer so much as another question. Is anyone else confused as to why Palin wasn’t advised to avoid wading into tricky waters when faced with questions about the mortgage rescue, and to simply stick with the words that have gotten her this far: “This was all God’s plan.”
Palin’s Bailout Statement Raises Questions [DealBook]
Read more »
Tags: BDSM, Fannie Mae, Freddie Mac, Hank Paulson, Mortgage Rescue, Treasury Department, Warren Buffett
Whatever your thoughts on the matter of the this little mortgage rescue are, you cannot ignore the toll it’s taking on Warren Buffett. CNBC had him on this morning in a phone interview with Becky Quick, who called in from her vacation down the shore, and not even the thought of the Quickster frolicking out on Beach Haven could cheer the old boy up. He sounded downright sad and was clearly not himself. The reason I know this is because while the Oracle of O praised Paulson for doing “exactly the right thing,” he failed to pepper any of his prose with trademarked out of nowhere analogies that marry aberrant sex fetish with folksy business wisdom. The pro couldn’t even get it up to say something along the lines of “I am 100 percent behind this plan,” instead simply noting that he “wouldn’t change anything,” and sighing audibly. To Buffett’s credit, at one point he did tell Quick, “The government was on the hook in this position many, many decades ago when they got in this half slave/half free position where they said we don’t guarantee Fannie and Freddie obligations, wink wink,” but it was obvious to all his heart wasn’t in it.
Buffett: Treasury ‘Did Exactly the Right Thing’ [CNBC]
Tags: Fannie Mae, Freddie Mac, Mortgage Rescue, Treasury Department
The common stock of Fannie Mae and Freddie Mac is almost exclusively held by large financial institutions. The top ten largest institutional holders control over half of the stock of each companies.
Details on Fannie Mae’s ownership can be found here. Details of Freddie Mac are here. (Courtesy of MSN.)