American Mortgage Specialist

It looks like Fannie Mae and Freddie Mac are headed for the gallows. That’s good news for taxpayers (which have pumped close to $200 Billion into the mortgage giants since they were placed under government conservatorship in 2008), but bad recent accounts for everyone else, because the US mortgage system has veritably come to depend on them to function in its current form.

Speculation surrounding the fate of Fannie and Freddie has been edifice steadily over the last year. Some expect(ed) that the organizations would be broken up and sold to private investors. Others thought that they would be turned into fully public institutions, with explicit government support. T

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One year after the government officially took control over Fannie Mae and Freddie Mac, that is the question everyone is asking. The companies have racked up a combined $165 Billion in losses over the last couple years, and already burned through $100 Billion in taxpayer-financed aid. Altogether, the government a little while ago has $400 Billion exposure to Fannie and Freddie.

It’s quite clear that something has to be done. A new report by the Mortgage Bankers Association (MBA) recommends that the two companies be split into three smaller entities and continue to perform the same role that they do now. U

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