Spank your GSE day

[4plexowner]

In recent weeks I’ve been watching the financial stocks closely

Fannie and Freddie have been beaten up pretty badly – down 10%, down another 5%, etc

This morning’s performance:

Fannie gapped down $8.58 or 22.8%

Freddie gapped down $12.15 or 32.4%

Wow!

~

The banking cartel is going to try to have the GSEs eat as much of the bad mortgage and mortgage-backed paper as possible (ie, stick the American taxpayer with their losses)

Talk of increasing the GSE loan limits to $1 million shows how desperate these idiots are

The banking game at this point is “How do we stick the American taxpayer with several trillion dollars worth of our losses without them noticing?”

Hopefully the markets are telling the nice banking and government men that Fannie and Freddie are not piggy-banks for their personal plunder

[TheBreeze]

Actually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.

I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.

Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.

BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.

[TheBreeze]

Actually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.

I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.

Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.

BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.

[TheBreeze]

Actually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.

I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.

Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.

BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.

[TheBreeze]

Actually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.

I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.

Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.

BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.

[TheBreeze]

Actually, I believe Freddie crashed down today because they reported a $3+ dollar loss for the quarter. Freddie is trading for less than $30 currently. A few more quarters like that and they will be insolvent. Fannie probably went down because of the Freddie earnings report.

I would love to see both of these POSs fail and then have the government not bail them out. Then we would really see a decline in home prices. With no quasi-governmental entity to guarantee mortgages, we’d start to see home prices gravitate to their true market value. That would be a great day.

Also, I disagree that the decline is due to a fear of future bad loans being stuffed into Fannie and Freddie. Based on Freddie’s huge loss, it looks like the GSEs already have tons of bad loans on their books. I recently got pre-approved for a ~ $300K mortgage from ELoan. Since it could be sold to Fannie, I wouldn’t have had to put any money down — all my closing costs could be folded into the loan. I think Fannie and Freddie are backing the same crappy mortgage loans as every one else — they just have a whole bunch of smaller bad loans instead of a bunch of jumbo bad loans.

BTW, is it OK if this news about Freddie and Fannie makes me giddy? Because it does.

[justme]

4plexowner,

Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!

[justme]

4plexowner,

Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!

[justme]

4plexowner,

Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!

[justme]

4plexowner,

Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!

[justme]

4plexowner,

Do you think increasing the jumbo limit to 1M is a scheme to pawn already existing not-yet-but-soon-bad jumbo loans onto the taxpaying public? I have to say that it is brilliant if it works. Very evil. I’m impressed. NOT!

[4plexowner]

Increasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008

Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates

~

Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?

[4plexowner]

Increasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008

Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates

~

Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?

[4plexowner]

Increasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008

Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates

~

Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?

[4plexowner]

Increasing loan limits to $1 mil creates more options for the 450,000 ARM mortgages that are going to reset EACH QUARTER in 2008

Some of these resetting mortgages could qualify for conforming GSE loans if the loan limits were increased – otherwise these people will be looking for jumbo mortgages that may or may not exist at affordable rates

~

Question for you, justme: do you think it is appropriate to offer $1 mil loans via programs that are intended for low-income people who are trying to purchase affordable housing? Do you have a problem that your tax dollars will back these $1 mil loans?

[Author]

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