Comments on: Fannie posts $2.3 billion quarterly loss http://blownmortgage.com/2008/08/08/fannie-posts-23-billion-quarterly-loss/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sun, 08 Nov 2009 16:51:22 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Mike Sweeney http://blownmortgage.com/2008/08/08/fannie-posts-23-billion-quarterly-loss/comment-page-1/#comment-12655 Mike Sweeney Fri, 08 Aug 2008 19:05:47 +0000 http://blownmortgage.com/?p=1218#comment-12655 I'm completely baffled why they're paying any dividends at all. Draining that equity will further reduce the stock price, so it's really no benefit to the stock holders. Probably hurts them more than it helps. They really need to shore things up. Maybe that just doesn't matter, though, when you've got a blank check from the gov. I'm completely baffled why they're paying any dividends at all. Draining that equity will further reduce the stock price, so it's really no benefit to the stock holders. Probably hurts them more than it helps. They really need to shore things up. Maybe that just doesn't matter, though, when you've got a blank check from the gov.

]]> By: Fielding Mellish http://blownmortgage.com/2008/08/08/fannie-posts-23-billion-quarterly-loss/comment-page-1/#comment-12654 Fielding Mellish Fri, 08 Aug 2008 16:27:20 +0000 http://blownmortgage.com/?p=1218#comment-12654 From <br><br><a href="http://globaleconomicanalysis.blogspot.com/2008/08/fannie-freddie-reality-check-big.html" rel="nofollow">http://globaleconomicanalysis.blogspot.com/2008...</a> <br><br>yesterday:<br><br>Freddie, in the second quarter, wrote down the value of its subprime and Alt-A portfolio by $1 billion. Freddie is claiming that they can hold these securities to maturity and not have to take a loss, because over time, the dire predictions of defaults on these loans just won?t come to pass. Freddie?s subprime and Alt-A portfolio is about $130 billion. Think of that. Just $1 billion in writedowns.<br><br>If Freddie is minimizing their losses by hoping they can just hold securities to maturity, then Fannie probably is, too. Unless home values pop up substantially & quickly, these GSE losses will end up looking ridiculously underreported.<br><br>Bill Gross still expects a $300 bil cash infusion from the Treasury to be necessary. From

http://globaleconomicanalysis.blogspot.com/2008...

yesterday:

Freddie, in the second quarter, wrote down the value of its subprime and Alt-A portfolio by $1 billion. Freddie is claiming that they can hold these securities to maturity and not have to take a loss, because over time, the dire predictions of defaults on these loans just won?t come to pass. Freddie?s subprime and Alt-A portfolio is about $130 billion. Think of that. Just $1 billion in writedowns.

If Freddie is minimizing their losses by hoping they can just hold securities to maturity, then Fannie probably is, too. Unless home values pop up substantially & quickly, these GSE losses will end up looking ridiculously underreported.

Bill Gross still expects a $300 bil cash infusion from the Treasury to be necessary.

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