The Malibu Real Estate Resource Guide
Malibu California Real Estate ׀ Malibu Homes for Sale & Lease ׀ Malibu Land
Fannie Mae and Freddie Mac may force lenders including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. to buy back $21bn of home loans this year as part of a crackdown on faulty mortgages.
That's the estimate of Oppenheimer & Co. analyst Chris Kotowski, who says US banks could suffer losses of $7bn this year when those loans are returned and get marked down to their true value. Fannie Mae and Freddie Mac, both controlled by the US government, stuck the four biggest US banks with losses of about $5bn on buybacks in 2009, according to company filings made in the past two weeks.
The surge shows lenders are still paying the price for lax standards three years after mortgage markets collapsed under record defaults. Fannie Mae and Freddie Mac are looking for more faulty loans to return after suffering $202bn of losses since 2007, and banks may have to go along, since the two US- owned firms now buy at least 70% of new mortgages.
Bobby Lehmkuhl ׀ Bobby@4Malibu.com ׀ 310.365.7696 ׀ Broker Lic. #01457517
Danielle Dutcher ׀ Danielle@4Malibu.com ׀ 805.341.8769 ׀ Broker Lic. #01463653
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Bobby...you believe this Gubermint PR?
Who do you think the banks are telling what to say about all their 'losses'? The banks will then declare (lordy I declare!) their losses on so called 'bad loans' and use this excuse to force these homes into short sales so they can profit from the transcations by using the 'loss share agreements' perfected by the folks at Goldman Sachs, Indmac and yes, the FDIC along with AIG and other insurers of the insurers. Homeowners are being forced out even though they may qualify for modifications or forbearance programs. It's corruption pure and simple.