Revised FHFA Forecast: Taxpayers To Fund Up To $363 Billion In GSE Losses By 2013

http://www.zerohedge.com/article/revised-fhfa-forecast-taxpayers-fund-363-billion-gse-losses-2013

Oh quit your bitchin
What's a half a trillion?
We're the richest country in the world aren't we?
Ben and Timmy said we were anyway
And they would never lie
They swore on their Wall Street code of honor that this is all sustainable.
Timmy will turn this into a profit just like he did with TARP, you watch and see.


The FHFA has just released it revised "draw" projections for the GSEs, i.e., money which US taxpayers will have to spend to keep the nationalized securitization monsters alive. The reality: after already receiving $148 billion from Tim Geithner's US Treasury, the FHFA now estimates that its downside case will result in additional $220 billion over the next 2 years, for a total of $363 billion through 2013. And since this is based on Moody's housing price forecasts, two things are certain: (i) the "upside" case of only $221 billion in cumulative draws can be heckled, and (ii) the final cost will likely be well north of half a trillion. Of course, by this point it will become clear that Fannie and Freddie have no idea whose mortgages they own (as they will discover post their subpoenaing of JPM and others), and the real cost will be potentially well in the trillions, and require a second full scale nationalization of what are already nationalized companies. Actually there is one more point: by 2013 the US will long be insolvent, the Fed will be monetizing everything (say in your best Tepper voice), and the NYSE and the Zimbabwe Stock Exchange will have merged in futile pursuit of synergies to generate $0.01 of revenue away from the 99.999% dark pool dominanted marketplace, and so what happens 3 years down the line is completely irrelevant.

From the FHFA:

FHFA: Watch The Misdirection

http://market-ticker.org/akcs-www?post=169155


What's that mean?
We're going to fix it by overlooking the criminal actions that made the mess?
You don't think your government is actually going to prosecute their buddies do you?
Who the hell would pay for their campaigns?
And the FHFA is part of the federal government so it's OK to over look the damning testimony given under oath, that hey, even they couldn't get the
the file documentation.
So we're just going to overlook that fact.
No one in America is going to accept this anymore.
More collusion in the cover up

Today, I am directing the Enterprises to implement a four-point policy framework detailing FHFA’s plan, including guidance for consistent remediation of identified foreclosure process deficiencies. This framework envisions an orderly and expeditious resolution of foreclosure process issues that will provide greater certainty to homeowners, lenders, investors, and communities alike.

In developing this framework, FHFA has benefitted from close consultation with the Administration and other federal financial regulators.

The country’s housing finance system remains fragile and I intend to maintain our focus on addressing this issue in a manner that is fair to delinquent households, but also fair to servicers, mortgage investors, neighborhoods and most of all, is in the best interest of taxpayers and housing markets."

One word: BULLF&#KING%$IT.

FHFA testified under oath before the FCIC that the GSEs do not have the loan files when they examine for fraud - that is, breaches of representations and warranties. (Yes, selling someone something you claim is a gallon of gasoline when it's really a gallon of water is fraud folks, not "a mistake.")

They further testified that they are being stiff-armed by the banks in obtaining those files, to the point they have had to file subpoenas.

But Fannie and Freddie should have those files if the REMICs - the securities they've offered to investors including the public - complied with their Prospectuses and Pooling and Servicing agreements. If the certifications that were made are accurate, the files are in Fannie and Freddie's possession.

But FHFA has testified - under oath - that those files are not in their possession.