St Louis Home Loan: Billions Lost By Fannie Mae And Freddie Mac

Consumers are now concerned that bailing out Fannie Mae and Freddie Mac will cost them about $154 billion according to the mortgage giants’ regulator.

But grimmer projections may be what this country will face. Many St Louis home mortgage professionals say the total bill may be twice the $137 billion already spent if our economy gets worse.

Current projections which are based on the results of a home-price “stress test” by the Federal Housing Finance Agency reported initial estimates on the total costs of the government’s rescue of these mortgage companies.

Although there isn’t much good news here, some feel that the best case scenario would be that these finance firms would lose about $6 billion. However, they still may have to borrow close to $68 billion to make dividend payments.

The actual loss may be about $18 billion but that would be if this economy gets better and the home prices stop falling in the near future.

But if the economy takes a turn for the worse and falls into another recession and home prices fall twenty percent of more, taxpayers could pay an additional $123 billion before dividend payments.

These drops could have a devastating affect on this slippery economy which could lead to more foreclosures.

This would also prove financially fatal for the 208,000 homes these two financial firms have already taken back.

Fannie and Freddie own or guarantee approximately 50 percent of the nation’s $10.6 trillion in mortgages.

And with mortgage delinquences growing, the ultimate bill for Fannie and Freddie may end up bankrupting taxpayers many of which had nothing to do with this mortgage crisis.

Federal policymakers have relied heavily on the firms to help stabilize the housing sector, which together with the FHA have backed or bought nine in ten new loans this year, according to Inside Mortgage Finance.

Get a St Louis loan today. Also visit www.StLouisMortgageGroup.com for a Loan Audit. Principal Loan Reduction: Available for both homes and businesses. Call us at 314-334-0210 or 877-334-0210.