A few days ago the Treasury Department announced their unlimited support for the two GSE’s, Fannie Mae and Freddie Mac. Many speculate sticking this potential bombshell of a story in the holiday news cycle was intentional leading to even more sinister assumptions. The most ‘horrible’ rumor circling the banking industry is Obama wants to give [...]

The Federal Housing and Finance Agency, a new regulatory body combining the old OFHEO, the Federal Housing Finance Board, and the Federal Home Loan Bank regulator which will continue to regulate the GSEs, is now official. In a press release, the FHFA announced the “Notice of Establishment” sent to the Federal Register which formally registers [...]

Government Sponsored Enterprise or GSE is something you probably never heard of before the mortgage meltdown. However, they have been around for some time. Government Sponsored Enterprise - GSE Definition In the mortgage world government sponsored enterprises usually refers to Fannie Mae and Freddie Mac. These two stock exchange private corporations were created by Congress [...]

Reuters reports the sovereign wealth fund of Kuwait, the KIA, will not be buying any more GSE debt. Exactly what Bernanke and Paulson were attempting to avoid last week, when they rushed to reassure the world the Fannie Mae and Freddie Mac debacle would not hurt investors, just happened. Great…just great. This is truly bad [...]

I’ve reported for about 18 months now the two GSEs, Fannie Mae and Freddie Mac are both severely over leveraged. Now I have a former Federal Reserve bank president agreeing with me calling both companies “insolvent”. William Poole, said in a Bloomberg report, “Congress ought to recognize that these firms are insolvent, that it is [...]

Finally I am getting some support for my long standing prediction the GSE’s, Fannie Mae and Freddie Mac, are on the verge of collapse. Tuesday the New York Time publish an article which I believe is the first from a major news outlet to even raise the question of the GSE’s long term viability. The [...]

Freddie Mac, a company responsible (along with the other GSE, Fannie Mae) for the sound underwriting standards of conventional, prime mortgages, decided last week to tighten it’s underwriting. This Freddie Mac tightening of underwriting standards is probably too little, too late. In the wake of the decision to allow the GSEs to underwrite and insure [...]