http://www.businessweek.com/news/2010-10-18/mortgage-buybacks-may-cost-lenders-120-billion-jpmorgan-says.html
America are you really willing to pick up Fannie and Freddies tab again?
Let them die!
Forced Repurchases
JPMorgan analysts said mortgage repurchase costs stem from $2 trillion of loans that have defaulted or are likely to go bad, among the $6 trillion of U.S. mortgages and home-equity debt originated from 2005 through 2007. The defaults will create about $1.1 trillion of losses for banks, government-supported Fannie Mae and Freddie Mac, bond investors and insurers.
Losses from forced repurchases may total $23 billion to $35 billion for loans sold to or insured by government-backed companies; $40 billion to $80 billion for so-called non-agency mortgages that aren’t backed by Fannie Mae, Freddie Mac or other government agencies, and $20 billion to $31 billion for home- equity loans, they said. Banks have already realized or reserved for a portion of the losses, the analysts wrote.
