Fannie Mae Begs Treasury for $7.8 Billion MORE to Stay Afloat After HUGE Bonuses Given to Executives

“The Federal Housing Finance Agency, the government regulator for Fannie and Freddie, approved $12.79 million in bonus pay after 10 executives from the two government-sponsored corporations last year met modest performance targets tied to modifying mortgages in jeopardy of foreclosure.”

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And they call you the “DEADBEAT.”

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Fannie Mae taps $7.8 bln from Treasury, loss widens

*Fannie Mae’s draw from Treasury now $112.6 billion

*Fannie Mae has returned $17.2 million in dividends

*Fannie Mae, Freddie Mac drawn about $169 billion total

By Margaret Chadbourn

WASHINGTON, Nov 8 (Reuters) – Fannie Mae , the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat as a shaky housing market widened its third-quarter loss to $5.1 billion.

The government-controlled firm also attributed the deeper cash drain to losses on derivatives used to hedge its exposure to interest-rate swings and on expenses related to home loans made prior to the 2008 financial collapse. In the year-earlier quarter it had a loss of a $1.3 billion.

Fannie Mae has now drawn $112.6 billion in bailout funds from the Treasury Department since being seized by the government in 2008 as mortgage losses mounted, and it has returned $17.2 billion to taxpayers in the form of dividends.

“There is certainly a lot of pre-2009 loans that we need to work through and that is certainly driving the credit losses you saw in this quarter and over the last several years,” Fannie Mae Chief Financial Officer Susan McFarland told Reuters.

Read the rest here…

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Comments
11 Responses to “Fannie Mae Begs Treasury for $7.8 Billion MORE to Stay Afloat After HUGE Bonuses Given to Executives”
  1. XXXX says:

    disgusting and outraged

  2. see says:

    It is obvious that Fannie Mae cannot make it without more tax payer’s money. They should let Fannie Mae go down just like the rest of the all the small business owners have the past few years. Fannie Mae cannot work within its means, they have had every opportunity in the world to help troubled homeowners but didn’t because it was more important to get paid bonuses they do not deserve. I say “foreclose” on Fannie Mae, period.

  3. gregory says:

    Close them down along with freddie burn the notes give the employees pinkslips and let america heal !!!!!!!!!!!!

  4. Triumphant says:

    Note that Fannie is apparently “borrowing” money ($112.6 BILLION) from US Treasury and using a small portion of that same “borrowed” money to pay dividends back to the taxpayers (is it $17.2 MILLION or $17.2 BILLION?). Note that this “paying of dividends” is crowed as a sign of what, exactly? Responsibility? A measure of success of the bailout? I guess they really think Americans are that stupid.

  5. Marco Barraza says:

    bonuses = hush money plain and simple they are paid hoping they will not whistleblow on them same as wall street

  6. suzy q says:

    I am beyond words. NO ONE at Fannie Mae deserves anything – a job, a bonus or being allowed to work anyplace else where there make judgments about other people’s money. I just moved back to the Detroit area to a house I have had for 10 years with no payment problems ever. It was originally a Fannie Mae and then was sold to Select Portfolio Servicing. No help for me when I was laid off from my job – I didn’t have an income so no modification, then when I finally found a job after two years, no modification because my income wasn’t enough, then it was too much and finally, I wasn’t the primary resident of the home, I lived in Nashville to find work so I could pay for the house. It has been a struggle for this senior citizen to stay afloat but I have managed to do it even though it meant leaving a job in Nashville and going back to Michigan with no job opportunities. Of course I am back to no job again so I am again not qualified for a modification. Thank you FANNIE MAE and Select Portfolio Servicing.
    Now that I am back in MI I see how depressed the area is and am seeing for myself, not just reading about the way these crooks have ripped people off. I am White but am seeing first hand how the Black communities were taken advantage of by refinancing scams and reverse mortgage scams and it makes me sick to my stomach!! I needed some work done around the house so my grandson gave me the name of a guy who rooms at the same house he lives in. “Joe” is 55 and literally homeless due to FANNIE MAE and their crooked practices. “Joe” has had a sorted past, jail time and chose some wrong paths in his life. I’m not making excuses for him. He went to live with his mother and take care of her while she was dieing of brain cancer in 2006. She passed away in 2009. “Joe” didn’t know she had gotten a reverse mortgage. It had been the family home for over 40 years and he thought it was paid for. I have heard more and more stories like this in the 3 weeks I have been back here. Of course house payments weren’t made, the house went into foreclosure and “Joe” was on the street. FANNIE MAE said he could have the house for an immediate $12,000 cash or he could get a mortgage. Who, in these depressed areas can do that? “Joe” called a newspaper reporter who took him under his wing, wrote an article on him and made numerous phone calls to FANNIE MAE, attorneys, etc to help “Joe” keep the house to no avail. The Judge befriended “Joe” and he is now living in a bedroom at the Judge’s sons home earning his keep by doing maintenance around the house and helping out with utilities when he can. Thank God for these angels or “Joe” would literally be on the street. Now, my question is – did FANNIE MAE give a rats back end? NO!!! Here is conversation between the news reporter and a FANNIE MAE representative – Fannie Mae rep “We can’t set a precedent to off-load property on the cheap because it’s sitting vacant. Our strategy is not to list property ridiculously low just to get it off the books. That would start to drag down over-all home values in the area.” The reporter told her – “Joe” could manage $500 a month for rent, she suggested that he take out a loan for $12,000 and buy the place. The reporter told her he works for cash. He has no verifiable income. The FANNIE MAE rep said – “that’s unusual”. The reporter stated apparently she hasn’t spent much time in Detroit where the real unemployment rate is probably close to 50%. FANNIE MAE would rather question this mans income and let another house sit to rot before helping the community pull itself together. FANNIE MAE

  7. For Real says:

    The saddest part ? They will probably get the $ and it will be business as usual , do any of us truly believe that anything will change ? Why ? Because we are here ?

  8. Judith McDonald says:

    UNBELIEVABLE! I have begged Fannie for 2 years HELP, forget any bonus for anyone and fix the loans you have lost! Bonuses almost laughable but this keeps happening while I hear of Homeowners of 35 yrs losing home.
    Top officials at Fannie Mae do not deserve jobs let alone a bonus. Banks same goes……

  9. Debbie says:

    No more taxpayer money for Fannie Mae and Freddie Mac…they have not done right by homeowners…let the chips fall where they may…no more….enough is enough.

    • LP says:

      These are failing businesses, not successful ones, so there is no reason to award bonus money. Bonuses are nothing but looting when businesses are not able to stay afloat and need multiple tax payer funded bailouts. Not another cent for the looters.

      • leapfrog says:

        Only in bankster-land are bonuses awarded to CEOs for dereliction of duty, gross malfeasance and utter incompetence. In the real world, these losers would have been FIRED long ago.

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