Fannie Mae and Freddie Mac are breaking out the foreclosure freeze guns during the holidays and suspending foreclosures on occupied homes until early 2009. (Sorry again investors. Freddie and Fannie are leaving you in the cold)
Isn’t it amazing that they can just flick the foreclosure switch like that?
“We felt it was in the best interest of both borrowers and Fannie Mae to take this extra step to ensure that homeowners with the desire and ability to prevent a foreclosure have an opportunity to stay in their homes,” Herb Allison, Fannie Mae’s chief executive officer, said in a statement.
Once home mortgage giants, Fannie and Freddie have morphed into government backed foreclosure giants that have over $5 trillion of the $12 trillion U.S. mortgage market that may be on the foreclosure hook. This is the first “true” sign of real compassion in this devastating crisis that is affecting men, woman and children in every city in America since the feds took over the almost failed lenders in early September.
Never has there been this many homes lost to foreclosure since the Great Depression.
Just last week, Fannie and took it on the chin when they posted record 3rd quarter losses of $54.3 billion. Now, they have their bankruptcy cups out and are seeking $13.8 billion from the U.S. Treas by Nov. 29 to “try” and stay solvent.
Meanwhile, Secretary Treasurer Henry Paulson had given them a $200 billion back stop back in October saying the companies would fail without federal intervention and would affect the safety of our economy.
I applaud Fannie and Freddie for having some foreclosure compassion during the holidays. But homeowners are still out in the cold when it comes to any “long” lasting hope and meaningful help from Washington.
Enjoy the holidays Fannie and Freddie borrowers Everyone else, well, you better get a good winter coat to make it through the winter because it’s going to be a looooooong and coooooold winter…..
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