As Wall Street bonuses bulged and housing prices were peaking in 2005, Daniel Mudd found himself dreading his top job at Fannie Mae. Going to work felt like “a choice between poking my eye out and cutting off a finger,” Fannie’s former chief executive officer recalls in Bethany McLean and Joe Nocera’s new tome, “All the Devils Are Here.” [Bloomberg]
Fannie Mae is asking for another $8.4 billion from the government to cover losses on bad mortgages after reporting a dismal first-quarter loss of $13 billion.
If fulfilled, the new request will bring Fannie’s total bailout package to $83.6 billion, nearly double the size of what the Treasury injected into Citigroup and Bank of America from the TARP program in Sept. 2008. Read more »
Fannie Mae is seeking an additional $10.7 billion in government aid after posting another massive quarterly loss as the taxpayer bill from the housing market bust keeps growing.
Fannie Mae seeks $10.7B in US aid after 2Q loss [Associated Press]
Well, someone over there is thinking. The motherland believes it has seen quite enough of agency shenanigans, thank you very much. There will be no more of that nonsense on Putin’s watch. Now let’s have no more of this so we can get back to imprisoning oligarchs and lacing reporters’ tea with lethal doses of radioactive material.
Russia banned investment of its $83.7 billion National Wealth Fund in bonds issued by foreign government agencies such as Fannie Mae (FNM.N) and Freddie Mac (FRE.N), the Finance Ministry said on Thursday.
The ministry said earlier on Thursday it had also banned investment of its $136.3 billion Reserve Fund in foreign government agencies’ bonds.
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]
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]
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.