Freddie Mac waste mountain

WASHINGTON -- Freddie Mac lost roughly $26 billion last year, meaningful headlines for taxpayers who are balance the check to rescue the debt monetary association and the kin Fannie Mae.

Freddie Mac, that has lost a sum of roughly $80 billion given the housing predicament proposed in 2007, is fresh for some-more pain. The McLean, Va., association pronounced a jot down 4 percent of the borrowers are at slightest 3 months at the back of on their payments and confronting foreclosure.

Its arch executive, Charles Haldeman, warned Wednesday of a "potential large call of foreclosures" still to come.

This is a vital complaint for the sovereign government, that seized carry out of Freddie and Fannie in Sep 2008. The dual companies have already siphoned $111 billion from the supervision to stay afloat. That series is approaching to strike $188 billion by tumble 2011.

And whilst Freddie Mac didnt ask for any some-more bailout income last quarter, the association pronounced it will expected need some-more monetary assist and competence never pay off it.

"We right away have total taxpayer bearing to the bailout of Fannie and Freddie, a bailout republic where the big get bigger, the small get not as big and the taxpayer gets poorer," Rep. Jeb Hensarling,R-Texas, pronounced at a House conference Wednesday.

Fannie and Freddie browbeat the debt market, subsidy about 70 percent of the loans done last year. The dual companies squeeze mortgages from lenders and package them in to securities. Investors are peaceful to buy the bonds since they are effectively on trial by the U.S. government. That puts American taxpayers at risk.

But the frail housing zone is so contingent on the supervision that officials contend they wouldnt have a minute exit plan until subsequent year.

Treasury Secretary Timothy Geithner told lawmakers Wednesday that the Obama administration department department will "make certain we move about elemental shift in the housing marketplace and get ourselves in a on all sides where the supervision is personification a less risky, but some-more helpful purpose in ancillary housing markets in the future."

Separately, Freddie Mac warned there is "significant doubt as to either or when we will emerge" from supervision control.

For taxpayers, stabilizing Freddie Mac and Fannie Mae has been one of the costliest consequences of the monetary meltdown. Freddie Mac has perceived about $51 billion from Treasury to date, and the Obama administration department department has affianced to cover total waste by 2012.

Freddie Mac pronounced Wednesday that it lost $25.7 billion, or $7.89 a share, for all of 2009. Of those losses, $4.1 billion went to dividends paid to the Treasury Department, that binds a scarcely 80 percent interest in the company.

During the majority new quarter, Freddie suffered $7.1billion in credit waste and a $3.4 billion write-down in low income taxation credit investments.