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This is a very good thing if you are starting to fund the Affordable housing Act. I have been waiting a long time to see you start puting money into this fund since 2008
Fannie was not insolvent.
At the time of conservatorship Fannie had 40 BILLION in capital.
2007 loss 2.1 billion
2006 Gain 4.1 billion (profit)
2005 Gain 6.3 billion (profit)
SUM it up
2008 Q1 loss 2.2 billion
2008 Q2 loss 2.3 billion
As you can see, before the FHFA could fool with fannies books, The losses by July 2008 were a total of 6.6 billion dollars.
Quote from Fannies 10-Q. Q2 2008.
Our core capital as of June 30, 2008 was $47.0 billion, $14.3 billion above our statutory minimum capital requirement and $9.4 billion above our regulator-directed 15% surplus requirement. We currently expect that we will remain above our regulatory capital requirement for the remainder of 2008.
FROM 2005 to 2006, fannie was profitable.
2007 minor loss vs capital. 5% loss of capital
2008 first 2 quarters another loss of 5% capital.
SO the statement that fannie was insolvent was a LIE. they had 47 billion in capital.
Which after the lawsuits and the DTA they did not need to take, They would have never been Insolvent!!! Also without the treasury forcing Fannie to buy from TBTF banks MBS alt-a and subprime immediately after conservatorship began.
As reported in:
Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets
By Dawn Kopecki – October 11, 2008 00:00 EDT
Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.
Fannie and Freddie began notifying bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities

Please relist and relist FNMA/FMCC