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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (84577)	8/10/2007 8:02:33 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 306849

So Fannie approaches 8/16 with just a tad of uncertainty. Lockhart's OFHEO report on fannie was not exactly a 5 star rec. The 2006 filing should be interesting. To me, the glaring unsaid statement is that Lockhart KNOWS the current state of affairs at FNM/FRE and he said NO raise in the cap. hmmmmmm..... then he says: OFHEO Director James B. Lockhart, the independent regulator charged with the decision, said Friday the risk of allowing the two companies to take on more debt at the moment was too great. Combined, Fannie and Freddie hold or guarantee two-thirds of all U.S. home mortgages. "Their safety and soundness is of paramount importance," said Lockhart, adding that he could reconsider the decision later on. It was Lockhart's agency that installed caps last year on the companies' mortgage investment holdings. Fannie's cap is set at $727 billion, Freddie's at $724 billion. "The marketplace should have confidence that (the companies') securities are trading efficiently," Lockhart said in a statement.