FHFA Announces Results of Fannie, Freddie, Dodd-Frank Act Stress Tests, Could Need as Much as $126 Billion in Crisis


fannie freddie

Fannie, Freddie Could Need as Much as $126 Billion in Crisis

  • Regulator’s stress test subjects companies to severe downturn
  • Companies would still have $132 billion in funding remaining

Fannie Mae and Freddie Mac could need as much as $125.8 billion in bailout money from taxpayers in a severe economic downturn, according to stress test results released Monday by their regulator.

The Federal Housing Finance Agency said that the government-controlled companies, which back nearly half of new mortgages, would need at least $49.2 billion.

The annual test, required by the Dodd-Frank Act, is likely to be used both by proponents of allowing Fannie Mae and Freddie Mac to build capital and by those who think there’s not an urgent need for the government to take that move.

Under the terms of the companies’ bailout agreements, Fannie Mae and Freddie Mac must send nearly all of their profits to the U.S. Treasury and wind down their capital buffers until they reach zero dollars in 2018. After that point, any loss at either company would require a draw from taxpayers.

More from Bloomberg here…

Press release from The FHFA with results here…

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3 Comments

  1. lvent
    August 11, 2016 at 12:01 AM — Reply

    They’re fraud racketeers whose main objective is to equity strip our TITLES unlawfully by FRAUDULENT CONCEALMENT of the fact they don’t have the NOTORIAL CERTIFICATES to perfect the collateral liens.

    Moreover, if the U.S. TREASURY DEPARTMENT had them, there would be no FC’s because the FEDERAL RESERVE BANK engaged in TITLE FRAUD.

    If the U.S TREASURY DEPARTMENT had them they would have robbed the PUBLIC TRUST by INVESTMENT FRAUD because the profits from THIRD PARTY investing & where they went is unknown

    The THIRD PARTY being the GSE’S & other INVESTMENT BROKERS like the FEDERAL RESERVE BANK were skimming on the margins for someone because CNBC reported $60 TRILLION was made in profits on MORTGAGE DERIVATIVES in the year 1999.

    1999 was the year CLINTON repealed GLASS STEAGALL so clearly the profits were made in house because they want us to starve..

  2. lvent
    August 10, 2016 at 11:39 PM — Reply

    Could their protection racket have more names than it does?

    That’s when it’s obvious their fraud is huge because every one of them does nothing.

    They fail in their duty to speak every time they get complaints
    because that’s what they’re paid to do.

    Where’s their CPA licenses to even take complaints is the real question because without having first hand knowledge of the crime by being there how can they know the transaction between thev2 party’s ever happened?

    They couldn’t have been party to it because if so it never happened so therefore the conundrum for them is financial fraud by third party spying which is not incidental to nothing but they robbed us & it was probably done from the men’s room.

  3. lvent
    August 9, 2016 at 9:18 PM — Reply

    The FEDERAL RESERVE BANK has been getting $85 BILLION per month since their derivatives market couldn’t perfect its own interests & the others cried wolf too & got more than they could have ever derived from credit default swapping what were more or less, time share funds in reality shows.

    They should open market share some of that with the U.S. economy instead of doing nothing but in house free market devaluations with our stolen wealth.

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