And they lost $151 million in the first quarter of this year. Freddie Mac, like its larger government-sponsored sibling, Fannie Mae, buys home loans from banks and lenders, packages the loans into bonds, and sells the bonds to investors. Since investors assume the government would not let Fannie and Freddie fail, the companies are able to raise money more cheaply than other banks and lenders.
Investors are afraid that this company is heading towards a government bail out. Lawmakers are considering legislation that tightens regulation of Fannie and Freddie, as part of a broad housing package that includes a $300 billion foreclosure prevention program. The House passed its version last month. Senate leaders say they want to vote by July. http://ap.indystar.com/dynamic/stories/F/FREDDIE_MAC_OUTLOOK?SITE=ININS&SECTION=HOME&TEMPLATE=DEFAULT
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment