Wednesday, February 27, 2008

US – “toughest housing and mortgage markets in a generation”

Fannie Mae hit by housing gloom

US mortgage giant Fannie Mae has posted a $3.55bn (£1.8bn) loss for the three months to the end of December. It blamed rising home loan defaults and set aside $2bn to cover further bad loans, warning the US housing slump could still get worse. The quarterly loss cut into full-year earnings and the firm reported a loss for 2007 of $2.05bn, compared with a profit of $4bn for the year before. It said it expects US house prices to fall between 5% and 7% in 2008.

Posted by jack c @ 05:08 PM (772 views)
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5 thoughts on “US – “toughest housing and mortgage markets in a generation”

  • “giant Fannie”.

    Hehe.

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  • This Is A Mess says:

    The trouble is you guys on here look like getting your way about hpc but are you going to be still employed after all it does look bleak .

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  • From Jim Sinclair’s site:
    “Regulators lifted the caps on Fanny and Freddie so they can buy more mortgages. Fanny and Freddy are both the slowest train wreck in market history. Both are loaded with failed derivatives which they have been trying to evaluate for more than 18 months. They are both losing big money and they have just gotten permission to get deeper and deeper into the OTC derivative and debt hole”

    It would seem that the US government is buying all the failed mortgages. What does anyone bet that something similar happens here? Our government now owns a mortgage bank. It now has the machinery to do the same as in the US. It will do ‘what is right’. I think we may well be hoodwinked into an un-imaginable bailout of the housing market before long.

    Market forces. My @rse.

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  • Hopefully cornishman, it will lead to riots. It is the last in a number of “steps too far” that Fat Gordon taken.

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  • inbreda – I saw some old film clips of the poll tax riots on TV the other night. I can’t imagine anyone getting up the same momentum any more. Even the recent fuel tax demo was nothing like previously.

    Still, like you say, we can but hope!

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