Wow. Freddie and Fannie reported a loss $11.5 Billion dollars and sees no end in sight for future losses. From their press release:
Due to current trends in the housing and financial markets, we continue to expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury pursuant to the senior preferred stock purchase agreement.
Fannie and Freddie asked for another $8.4 billion from Treasury and last month received $15.3 billion from Treasury, bringing the tally up to $92.7 billion dollars.
Our estimated market share of new single-family mortgage-related securities issuances was 40.8 percent in the first quarter of 2010, compared with 38.9 percent in the fourth quarter of 2009. Our mortgage credit book of business was $3.18 trillion as of March 31, 2010.
Fannie and Freddie also have a host of Mortgage Backed Securities on their books and look at these statements in regard to them:
- Elimination of fair value losses on credit-impaired loans acquired from MBS trusts we have consolidated, as the underlying loans in our MBS trusts are already recognized in our condensed consolidated balance sheets.
- Our portfolio securitization transactions that reflect transfers of assets to consolidated MBS trusts do not qualify as sales, thereby reducing the amount we recognize as portfolio securitization gains and losses.
- We also no longer recognize gains or losses on the sale from our portfolio of available-for-sale MBS securities that were issued by consolidated MBS trusts, because these securities are eliminated in consolidation.
- We no longer recognize fair value gains or losses on trading MBS that were issued by consolidated MBS trusts, which reduces the amount of securities subject to recognition of changes in fair value in our condensed consolidated statements of operations.
They no longer recognize their losses on worthless mortgages?
Delinquencies also increased:
Our single-family serious delinquency rate increased to 5.47 percent as of March 31, 2010 from 5.38 percent as of December 31, 2009, but grew at a slower pace than in each quarter of 2009 as we continued to work with our servicers to reduce delays in completing workouts and more modifications and foreclosure alternatives are being pursued.
We acquired 61,929 single-family real estate-owned properties through foreclosure in the first quarter of 2010, compared with 47,189 in the fourth quarter of 2009. As of March 31, 2010, our inventory of single-family real estate owned
properties was 109,989
This news barely gets a yawn in the press. It's astounding to read a press release telling the public they are hemorrhaging money and require infinite taxpayer funds for an indefinite period.
Calculated Risk has a post on homes with negative equity (complete with graphs). Las Vegas has 75% of their residential property under water. The national rate is 24%, but it's clear there are regional pockets, so hopefully we can get a map on percentages of mortgages more than the home is worth.