Wednesday, August 5, 2009

Moody's Downgrades Fannie Mae, Freddie Mac to "Bleak" (FNM, FRE)

UPDATE here.
Original post:
From HousingWire:

Moody’s Says US May Wind Down Fannie, Freddie

Two giant players in the US mortgage finance market share a ‘bleak’ near- to immediate-term outlook as losses continue to mount, according to Moody’s Investors Service.

Regulators may begin to wind down government-sponsored enterprises (GSEs) Fannie Mae (FNM: 0.7497 +31.53%) and Freddie Mac (FRE: 0.7715 +26.48%) within the next 18 months, Moody’s said Monday in a global banking analysis report.

Fannie and Freddie landed in conservatorship under the Federal Housing Finance Administration in September, and since have drawn a respective $35.2bn and $50.7bn from the government under an agreement with the US Treasury Department, which said it would purchase up to $200bn of senior preferred stock....MORE

HT: Mortgage Lender Implode-o-Meter