Tag: FHA

Nov 12 2009

Government efforts at re-inflating the housing bubble may have peaked

  After posting massive losses, yet again, Fannie and Freddie have warned that they will be needing another round of bailouts in the near future.

  Fannie Mae and Freddie Mac, already reeling in red ink, are warning they could face additional losses from the weakening condition of mortgage-insurance companies.

  Fannie and Freddie together have required capital injections from the Treasury of $112 billion since the government took them over through conservatorship last year. Their need for government support would have been greater without collecting on claims from mortgage-insurance companies. Fannie and Freddie have received payouts of $2.3 billion and $658 million, respectively, from mortgage insurers through September this year.

  But as conditions for mortgage insurers deteriorate, Fannie and Freddie have warned that their claims against the insurers may not be paid in full.

 

Apr 30 2009

Foreclosure Crisis: The Gov’t Response, Decoded

Foreclosure Crisis: The Gov’t Response, Decoded

from Alexandra Andrews, ProPublica, April 29, 2009 2:02 pm EDT

Getty ImagesBy now, you’ve probably heard about the Obama administration’s Making Home Affordable plan – the government’s most aggressive and wide-ranging attempt yet to stem the nationwide scourge of foreclosures. We’ll be tracking some homeowners as they make their way through the program, so we thought we’d lay out the plan in detail first.

We also wondered what was happening to the government’s other foreclosure-prevention efforts. Are borrowers still using them? FHA’s $300 billion Hope for Homeowners program isn’t seeing much action (so far, only a single homeowner has refinanced through the program), but some homeowners are finding relief through programs run by various government agencies, like the Department of Veterans Affairs.



[snip]

The U.S. Department of Housing and Urban Development admits its ‘Hope for Homeowners’ program has fallen short.