Fannie Mae-No Politics (FNMA)

[Rodney5]

The Toxic Waste funneled through Fannie and Freddie to the Fed.

White Paper

“It should be noted in Figure 2 that the only years when Fannie Mae showed negative cash generation was 2009 and 2010 and not in 2008 when it was taken over by the Treasury. In reviewing the Statement of Cash Flows for 2009, it can be seen that there were two cash outflows that were extremely large and both decreased by more than $100B in 2010. These two items are “Purchases of Loans Held for Sale” and “Purchases of Available-for-Sale Securities.” In millions, the outflows were $109,684 and $165,103, respectively. Part of the $165,103 outflow was due to “advances to lenders.” Without these outflows, Fannie Mae would have not had a deficit in its 2009 cash position. It is also important to note that during 2009 and 2010, Fannie Mae continued to purchase loans from originating institutions that exceeded the sale of mortgage backed securities (MBS). For Fannie Mae, 2009 was an anomaly as the Treasury created a significant outflow of cash resources into the accounts of private investment bankers who had liquidity problems and were able to sell their toxic mortgages to Fannie Mae as ordered by the Treasury. Page 6

NOTE 11: 2008 Blog Report from MyBudget360: “There is a report out by Bloomberg and now being reported by CBS MarketWatch that Federal regulators are going to order Fannie Mae and Freddie Mac to start buying $40 billion a month in troubled mortgages each month.” Page 6

Link: https://www.housingwire.com/wp-content/uploads/media/files/Editorial/Trey-Files/White-Paper_Treasury-Fannie-Mae-FINAL.pdf

Evidence

From Board of Governors of the Federal Reserve System
95th Annual Report 2008

Quote: "since the November 25 announcement of the Federal Reserve’s program to purchase MBS issued by the housing GSEs and Ginnie Mae, and they currently stand at 5 percent." End of Quote page 19

Link: https://www.federalreserve.gov/boarddocs/rptcongress/annual08/pdf/AR08.pdf


Quote: "It's a big event that the Federal Reserve is offering to buy up nearly 10% of the agency mortgage market," said Art Frank, a mortgage strategist with Deutsche Bank Tuesday morning, the Federal Reserve announced that it would buy up to $500 billion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae, providing the ultimate support to prop up the $4.8 trillion market of these securities. The central bank also will buy $100 billion of the mortgage finance companies' debt securities, including that of the Federal Home Loan Bank, through reverse auctions starting next week. So far, other initiatives to prop up the market including a plan to have both the government-sponsored enterprises buy nearly $200 billion of these bonds and the U.S. Treasury's unlimited purchase of these bonds have done little to stop the weakening of risk premiums on mortgage bonds. As a result, mortgage rates have remained at elevated levels with little relief to consumers." End of Quote

Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33791597