Fannie-Freddie Hit with New Record Delinquencies (NYSE:FNM),(NYSE:FRE)
The burst of the housing bubble hit Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) has as their stock values are approaching penny-stock levels. The bad news seems to keep rolling in for the financial lending firms too.
Zerohedge tells us “Yesterday we noted that Fannie just announced a record number of delinquencies at 5.52%. Today, not to be outdone, Freddie follows up and discloses that total delinquent loans also hit another fresh high of 4.08%, an increase from January's 4.03% and double the 2.13% from last February. Also yesterday we noted that CMBS delinquencies are likely in the 6-7% range, as both the residential and commercial real estate market continue experiencing unprecedented weakness.
Also, as reader Tin Cup points out, "The credit enhanced book of business (loans insured by the private mortgage insurers) also hit a record high or 8.59%, up from 8.52% in January (and also double last year’s 4.54%). Again, despite trillions being throw at the housing market, delinquencies continue to rocket upwards."
Sure enough, the market continues to ignore all negative news and just focuses on the direct consequences of a waning fiscal and monetary stimulus program.”