Freddie Mac and Fannie Mae were bailed out, and so was American International Group.
However as unpopular as they are, Freddie Mac and Fannie Mae are necessary for our economy right now.
"We cannot have as our nominee someone who continues to stand with Freddie Mac and Fannie Mae, " she said.
This is exactly what Freddie Mac and Fannie Mae used to do with mortgages and we all know how that ended.
It does so on behalf of their owners, primarily large banks and government agencies like Freddie Mac and Fannie Mae.
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More companies are coming under scrutiny, especially if they have large debts, are exposed to the capital markets and have perplexing accounts like Freddie Mac and Fannie Mae.
Conversely, home lenders Freddie Mac and Fannie Mae saw their shares rise 2.3% and 3.0%, respectively, on the outlook that Democrats would be sympathetic to their goals.
This includes debt guaranteed by the federal government, like money market funds and bank CDs, and the obligations of government agencies like Ginnie Mae, Freddie Mac and Fannie Mae mortgage debt.
First, the way Freddie Mac and Fannie Mae spent millions of dollars lobbying some influential members of Congress in exchange for, among other things, lax capital reserve requirements for these mortgage giants.
To explain: Home-financing policies of our government, expressed through the loans found acceptable by FHA, Freddie Mac and Fannie Mae, favor site-built homes and work to negate the price advantage that manufactured homes offer.
For instance, when guaranteeing home loans, Freddie Mac and Fannie Mae, America's giant mortgage companies, could be required to demand higher down-payments as a proportion of the purchase price, the higher house prices are relative to rents.
Freddie Mac and Fannie Mae are not in trouble because of their structure or financial underpining, rather because of perverse incentives to senior managers resulting in gutting of underwriting criteria and the purchase or guaranteeing of bad loans.
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He slams not just the decision to let Lehman Brothers fail in September 2008 but others, as well the imposition of losses on uninsured depositors at IndyMac, a big Californian thrift, in July of that year, and the hit to preferred shareholders in Freddie Mac and Fannie Mae when the government took over America's two housing-finance giants.
And if the Fed stops buying Fannie Mae, Freddie Mac and Ginnie Mae paper, it could become 1994 all over again.
Bert Ely, an analyst in Virginia, reckons that almost half of Freddie Mac's and Fannie Mae's debt matures in less than 12 months.
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The Journal's recent misleading and inaccurate editorial on my relationship with Fannie Mae and Freddie Mac leaves out one central fact, and it does so in a very revealing fashion (" Fannie Mae's Patron Saint, " Sept. 9).
Wachovia, Washington Mutual and Merrill Lynch were pushed into rescue mergers with other banks, Lehman Brothers collapsed, and mortgage lenders Fannie Mae and Freddie Mac were basically taken over by the government.
We should also terminate all unspent TARP bailout funds, cancel all unspent stimulus monies, and break up Fannie Mae and Freddie Mac, moving their smaller successors off of government guarantees and into the free market.
Today's announcement by the Fed that it will purchase direct debt obligations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and also mortgage backed securities guaranteed by Fannie, Freddie and Ginnie Mae, underscores our support for the housing market.
"If all the authority were fully implemented, the federal government would directly fund, own, and lend to Fannie Mae and Freddie Mac for the first time since the companies were created, " he said in a note to clients sent out Sunday evening.
By investing virtually all of their assets in mortgage-backed securities backed by the Government Sponsored Enterprises (GSEs: Fannie Mae, Freddie Mac, and Ginnie Mae) the Agency Mortgage REITs are able to completely deflect credit risk.
Included in the bill are provisions to overhaul the regulation of Freddie Mac, Fannie Mae and the Federal Home Loan Banks, as well as provisions to increase loan limits to veterans, increase various tax credits to home buyers, and increase the issuance of tax-exempt bonds to refinance subprime loans.
The exact mix between the cheap money policy of the Fed (which allowed the prices of real estate to be bid up) and the unsound lending and guarantee practices of Fannie Mae and Freddie Mac is surely part of the overall story.
Included were a vastly beefed up Community Reinvestment Act, actual or threatened discrimination suits by Justice and HUD to enforce regulatory requirements, and regulatory mandates on Fannie Mae and Freddie Mac to finance trillions in mortgage securities backed by subprime mortgages.
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And government-backed lenders Fannie Mae and Freddie Mac have agreed to new rules for home appraisals.
We'll see whether investors will lend enough money and at reasonable rates to Fannie Mae and Freddie Mac.
First by law, and then by regulation, Fannie Mae and Freddie Mac were systematically forced to increase their purchase of subprime loans to 56% of their holdings.
Nearly a year and a half into the U.S. mortgage crisis, Congress has taken its most significant step in coming to the aid of beleaguered borrowers and propping up mortgage buyers Fannie Mae and Freddie Mac .
Yet she has written a thoroughly researched and heavily documented book, Fannie Mae and Freddie Mac, Turning the American Dream Into a Nightmare, (Bloomsbury 2012) in which she shows that an ideological bias in favor of low-income lending led the U.S. government over a sixteen year period to promote subprime and other low quality mortgages, degrade mortgage underwriting standards, and cause both the mortgage meltdown and the global financial crisis.
Congress has long shielded the wild--and criminal--profligacy of Fannie Mae and Freddie Mac.
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