IS IT TIME TO KICK SOME FANNIE & FREDDIE?

News

Now that mortgage giant Fannie Mae says it once again has lost money in its fourth quarter, it is asking our US federal government for $4.57 billion to cover another deficit.

Washington-based Fannie said it lost $2.41 billion in the October-December quarter, as a result of lower home prices. Revenue was $4.53 billion.

Our government rescued Fannie and its brother Freddie Mac, back in September 2008 to cover their losses on bad mortgage loans. Since then, the Federal Housing Finance Agency has controlled their finances.

Taxpayers have spent more than $150 billion on Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The US government estimates this huge figure could top $259 billion to support the companies through 2014. Fannie has so far received over $116 billion from US, the most expensive bailout ever.

A Year ago, President Obama unveiled a plan to slowly dissolve the two mortgage giants. The administration's aim is to shrink their role in the mortgage system, remaking decades of federal policy aimed at getting Americans to buy homes. It would also probably make home loans more expensive.

It may be time for you to contact your congressional representatives and voice your opinion on the future of these mortgage money pits.