Westhus Reaping Fannie Windfall To Rival Big Short

March 10, 2014 • Page 6 of 6

Perry representatives wouldn’t comment on how much they’ve already made from the preferred shares.

While the debate rages, investors will have to content themselves with trading preferred shares that may or may not have any value in the future, Corker said.

“With where it’s trading right now,” he said, “I’d be getting out with a handsome profit.”

« Previous Article | Next Article »

4 Comments

Comments

johngflynn657 9 years ago

The company is permitted to retain only a small capital reserve from retained earnings. In 2014, that number was $2.4 billion for each quarter. In 2015, that amount is $1.8billion and that amount declines each year thereafter until it reaches zero in 2018. The natural consequence of this is that, because we will have an ever smaller cushion to absorb losses, the possibility of our needing to take a draw from Treasury increases over time. So the bill is to kill off the two companies, setup a new entity that would serve as a reinsurer of 90% of the losses and ask private entities (banks??) to assume the first 10% of the loss..
PaulaCarter 9 years ago

Hoping to broaden the pool of home buyers and boost the real estate market, Fannie Mae and Freddie Mac are launching mortgage programs with down payments as low as 3%. The move, targeting buyers with good credit but little cash, has drawn fire for encouraging the kind of risky lending that caused the mortgage meltdown and financial crisis. But Fannie and Freddie executives said the programs contain proper safeguards. The programs could give a boost to first-time home buyers, who have largely stayed on the sidelines of the housing market rebound.
CourtneyHewitt 9 years ago

I find this post very interesting. Freddie Mac and Fannie Mae, the government-backed mortgage insurance and brokerage companies, have been in huge financial trouble for many years. Both have received billions in taxpayer-funded loans. However, Fannie has posted its first profit since 2008 and declined any federal loans for the time being. It is very important that we have ample savings in these hard times.
CyndyMarenco 10 years ago

Fannie Mae and Freddie Mac is one of the United States government backbones that deal with mortgage markets and securities. There are some reports that United States housing industry gains profits today compared few years ago. The posting is yet more proof that the housing industry is starting to move toward stability. A short term loan can help you pay for your mortgage this month.

Westhus Reaping Fannie Windfall To Rival Big Short

You are not logged in