Fannie and Freddie Announces More Losses

sudler-sothebys-logo 1 March 2010
The two federally insured companies that purchase mortgage backed securities, Fannie Mae and Freddie Mac, have announced 2009 fourth quarter losses of approximately $15-Billion. The two companies are reportedly planning on asking the Federal Government for more bail out funds. While some might say… “let them go under,” think about this first. Fannie Mae and Freddie Mac make up 70% of the mortgage loans throughout the United States today. On average, this year,  there are about $53,000,000 in mortgages across the country. Fannie Mae and Freddie Mac hold about $31,000,000 of the $53,000,000, with only a 3% default rate. If the Federal Government allowed Fannie Mae and Freddie Mac to go under, the housing market would not only slow down, it would disappear, and the impact on the overall economy would be devastating. Alternative solutions should be considered, solutions that would offer gradual changes to the system, rather than economy-killing one-time events.

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About Katie Anderson

Katie Anderson is a respected and successful broker at Sudler Sotheby's Realty as well as a certified appraiser. She specializes in representing clients who purchase and sell condominiums, town homes, single-family homes and income property in the Chicago land area. In her small amount time in the real estate game (she became an agent in 2003) she has assisted in excess of 400 deals and over $200 million in sales and continues to use her skills as a certified appraiser. Katie resides in Chicago's Bucktown neighborhood with her loving husband and 4-year-old-daughter, where she spends much of her spare time with her family and friends. You can contact her at katie@thechicago77.com or at andersonbraack.com

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