Portfolios continue to deteriorate. The single-family serious delinquency rate climbed to 4.98% in October, which is the most recent month of data. The multifamily delinquency rate dipped to 0.61% in October from 0.62% in the previous month. Delinquency rates in both categories swelled from October 2008, when the single family delinquency rate was 1.89% and 0.21% for multifamily loans.
Blank Check for Freddie and Fannie
The Treasury Department uncapped potential aid to Fannie Mae and Freddie Mac, lifting the existing $400 billion cap on government cash available. On Christmas Eve, President Obama removed cap on each of the two mortgage underwriters, they will have access to unlimited Treasury funds through 2012
First, the timing speaks volumes to me about how much more bad paper is in the pipeline. Doing this on Christmas Eve amounts to hiding and the corporate beneficiaries cant be far behind. With trillions of dollars in taxpayer exposure, we need transparency. When the Govt changes the rules and gives blank checks to institutions, in a less than transparent fashion, we need oversight. We should be sure that we are not getting ripped by the lenders that put us here in the first place.
Thanks for Reading