Sep
30
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