Freddie and Fannie Future in Limbo
We know Fannie Mae and Freddie Mac continue to bleed billions of dollars. The two lost a total of $188.4 billion in the past nine quarters. The Federal Reserve has bailed them out to the tune of $1.1 trillion in home loan bonds bought by the Fed. The Treasury Department has bought another $191 billion and just gave Fannie and Freddie a blank check to keep the cash register running for at least another year.
So when will Fannie and Freddie put on the breaks and stop fueling U.S. mortgages?