K-12 Tax & Spending Climate: Our Share of Fannie Mae & Freddie Mac Losses: $1,300 Per Household

Jack Hough:

Fannie Mae said Wednesday it lost $2.4 billion during the fourth quarter of 2011 and $16.9 billion for the full year.

It has had worse years, remarkably. Fannie lost about $60 billion in 2008 and $72 billion the following year-two of the 10 largest corporate losses ever. Sibling Freddie Mac is responsible for a third, a $51 billion loss in 2008.

Fannie Mae was established in 1938 to promote home ownership by making federal funds available to lenders. In the 1950s and 1960s, it transformed into a profit-seeking corporation, with the goal of purchasing mortgages and selling them to investors, thereby replenishing funds to banks for fresh loans. Freddie Mac was created in 1970 to spur competition.

Related:, via WISTAX:



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Posted by Jim Zellmer at March 1, 2012 10:10 AM
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