U.S. Weighs Takeover of Two Mortgage Giants, Fannie Mae and Freddie Mac

More mortgage mess, taxpayers on the hook !

WASHINGTON — Alarmed by the growing financial stress at the nation’s
two largest mortgage finance companies, senior Bush administration
officials are considering a plan to have the government take over one
or both of the companies and place them in a conservatorship if their
problems worsen, people briefed about the plan said on Thursday.


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Got to love Republican style capitalism where privative profits and socialize loss.

Fannie Mae is the nation's largest mortgage buyer and a financial juggernaut that affects the lives of tens of millions of home buyers. It was created during the Depression to make sure that sufficient funds were available to mortgage lenders, then rechartered by Congress in 1968 as a publicly traded company.


"Fannie Mae (FNM), the nation's number one mortgage finance company is being charged with inappropriate accounting practices by a government review. Their accounting practices being called into doubt was disclosed by their board on September 22, 2004. "


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