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With Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) increasing their efforts to persuade banks...

With Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) increasing their efforts to persuade banks to buy back soured mortgages, five top lenders - BofA (BAC), Wells Fargo (WFC), JPMorgan (JPM), Citigroup (C) and Ally Financial - set aside nearly $3B in H1 to repurchase the loans, Bloomberg calculates. Regional lenders such as SunTrust Banks (STI) put aside an extra $1.3B.
Comments (6)
  • rambler1
    , contributor
    Comments (467) | Send Message
     
    How about FNM & FRE ultimately going away. Let the banks write the mortgages & keep them or sell them amongst themselves. Nobody needs the extra competition from them & they just exaggerate the amount of money available for mortgages. Plus they've been a repository for all this crap coming back at the banks anyway.
    15 Aug 2012, 07:37 AM Reply Like
  • David Sims
    , contributor
    Comments (405) | Send Message
     
    Bill Gross estimates that borrowers save 300 basis points on mortgages because the GSEs exist. And now after two quarters of profitability, you want to kill them?
    15 Aug 2012, 08:27 AM Reply Like
  • suddencall
    , contributor
    Comments (59) | Send Message
     
    BS. You are out of reality. Before FNM AND FRE you could not get a loan . grow up and turn off the Fox NEWS.
    15 Aug 2012, 10:42 AM Reply Like
  • itsAme
    , contributor
    Comments (99) | Send Message
     
    We can only hope the GSEs become outlawed. They probably will one day.

     

    Congress will outlaw them. Rates will go up to 9-12% for a mortgage. Housing prices will come down as well as rents across the entire country. The rich who control real estate will see lots of wealth disappear and the middle class will be able to celebrate housing affordibility and a return to being able to survive on one working parent's salary.

     

    Whoever is president when congress passes the law will go down as the ultimate hero of the middle class and savior of America.

     

    But the GSEs were created and are being maintained to control the middle class and keep wealth in the hands of a select few so maybe that day will never come!!
    15 Aug 2012, 11:12 AM Reply Like
  • PAHaysAZ
    , contributor
    Comments (2) | Send Message
     
    Two words: "Market distortion."
    15 Aug 2012, 10:25 AM Reply Like
  • suddencall
    , contributor
    Comments (59) | Send Message
     
    Obama needs to replace Demarco , He has been asleep at the wheel long enough.
    15 Aug 2012, 10:44 AM Reply Like
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