Fannie Mae-No Politics (FNMA)

[MonestHind]

"Billions in losses to eat into FNMA profits"

“The Los Angeles Times reported that the mortgage companies Fannie Mae and Freddie Mac have delayed the implementation of accounting rules that would require the companies to account for losses on delinquent mortgages," began Tubbergen. "This in spite of the fact that the companies are now throwing off record profits with the recent rebound in the housing market."

Resurgent bailout recipients Fannie Mae and Freddie Mac have been avoiding billions of dollars in potential long-term losses by delaying the use of new accounting measures that would require them to write off more delinquent mortgages, a government watchdog agency said in a letter released Monday.

Despite a 2012 determination by their regulator, the Federal Housing Finance Agency, that the new accounting rules should be adopted, the agency has allowed Fannie and Freddie to delay implementation until Jan. 1, 2015, according to a letter from Steve A. Linick, the regulator's inspector general.

"Three years appears to be an inordinately long period to fully implement" the new rules, Linick wrote to acting FHFA director Edward J. DeMarco on Aug. 5.

The write-offs would eat into recent record profits by the two mortgage finance giants as the housing market has recovered.

Fannie and Freddie were on the brink of bankruptcy after the subprime housing bubble burst. The government seized them in 2008 and have pumped in about $187 billion in taxpayer aid.

By "Apple Bee?" - Nope.

By "Tyler Durden?" - Nope.

By Dennis Tubbergen? - Indeed...an actual person...with actual credentials.

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has a syndicated radio show that can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM. I reccommend everyone get TuneIn Radio and check it out. Sharp individual to say the least.