Streams

Lending a Hand to Fannie Mae and Freddie Mac

Monday, May 17, 2010

Wall Street Journal reporter Nick Timiraos explains what’s happened to the government-sponsored mortgage giants Fannie Mae and Freddie Mac since the fall of 2008, and why they continue to be so troubled.

Last week, Fannie Mae and Freddie Mac announced losses for the first quarter of 2010 that totaled $6.7 billion. Now they’re asking for $10.6 billion in government assistance.

Guests:

Nick Timiraos

Comments [4]

David Frenk

The real reason the GMEs are in such deep water is because they were the vehicle of a shadow bailout that began in 2007, way before TARP. The Bush administration used Fannie and Freddie to buy toxic assets from the large banks to try to fix their balance sheets before the public even knew there was a crisis. The Federal Home Loan Banks were also involved.

You can read about it here: http://rortybomb.wordpress.com/2010/02/17/gse-losses-as-shadow-bailout/

May. 18 2010 09:14 AM
Eugenia Renskoff from Williamsburgh, Brooklyn

Hello, When are we, the people who got scammed, going to be bailed out? My unfortunate real estate experience in Atlanta, GA has marked me for life. In spite of all my efforts, I lost my home to mortgage fraud, predatory lending and foreclosure. Eugenia Renskoff

May. 17 2010 02:11 PM
Short Sales

Please ask your guest why the process of buying a "short sale" property is so difficult. Realtors know little about the process and the transaction can drag on for months.

Will this process be simplified? Is that something Congress has to get involved in or is it up to the banks?

May. 17 2010 12:18 PM
asdf

what is the relation between fannie and freddie, and the so called "free market"?

May. 17 2010 12:08 PM

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