Mortgage Rates Moving Up
Real Estate – Jim Rogers says Fannie and Freddie are a ‘disaster’
"The U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac is an “unmitigated disaster'' and the largest U.S. mortgage lenders are “basically insolvent,'' according to investor Jim Rogers.
Jim Rodgers, is the chairman of Rogers Holdings, in April 2006 he correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce, also said the commodities bull market has a “long way to go''. Rogers, a former partner of hedge fund manager George Soros, predicted the start of the commodities rally in 1999. San Diego real estate agents
Nation’s Mortgage Lender Records Loss of $2.2 BILLION +$1.1 BILLION Charge Off
Fannie Mae reported a net loss of $2.2 billion, or $2.57 per share, for the first three months of 2008, vs. a profit of $961 million, or 85% per share, a year ago, on a 38.2% rise in revenue, to $3.78 billion. Fannie also recorded a $1.1 billion charge in the first quarter on mortgage-related securities backed by Alt-A and subprime loans that were classified as trading securities.
Fannie Mae said it now expects home prices across the U.S. to fall by an average of 7% to 9% this year, having already dropped 3% in the first quarter. With credit losses now expected to be bigger due to a sharper decline in home prices,
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home. In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world. San Diego downtown real estate