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FBN’s Gerri Willis on Fannie Mae and Freddie Mac spending taxpayer money to send employees to a mortgage conference in Chicago.
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Fannie Mae and Freddie Mac.
Monster mortgage companies and they've sucked up by a 183.
Billion dollars of our taxpayer money.
They found a new way to spend a little bit more listen to this conferences.
The too is companies spend more than 640000.
Dollars this -- the send a hundred employees.
To a Chicago mortgage industry conference that's not big bucks.
But it kinda ticks me off let's break it down it was 342000.
Dollars for travel include no hotels.
-- 4000 dollars whiny and dining bankers believe -- -- not.
A 140000.
Dollars to sponsor the conference and 68000 dollars in registration -- So not only do we dole out a ton of money.
To -- employees to a conference in Chicago but we also paid for bankers to break bread with Fannie and Freddie employees and unholy alliance.
The drove our economy into a depression like recession when it happened three years ago.
If -- -- we should be paying to keep them apart.
This comes on the heels last month when twelve executives -- the two companies got 35 million dollars in performance bonuses.
We're still treating these companies is that they were successful operations doling out bonus is sending people on conference is and you know -- a failure.
But wait a second it gets worse the government's meddling in housing doesn't stop with Freddie and Fannie.
There's actually a three legged still here and that third leg is the Federal Housing Administration.
In its annual report to congress two weeks ago it said there was a 5050 chance it will go bust but today at a congressional hearing.
Hud secretary Shaun Donovan defended his agency saying it won't need a bail out the -- us.
Not only does the actuary report.
Find the fund retains positive capital today.
It predicts it projects that FHA should be able to rebuild reserves to the congressionally mandated 2% threshold.
Not quickly once markets across the country -- sustained growth.
And that my friend is a best case scenario if I ever heard one.
But as we've reported here there are many independent report showing the agency is in much worse shape.
Then Donovan was saying right there including -- from professor Joseph your co from the Wharton school who said here on this program that.
The FHA could need at least fifteen maybe even a hundred billion dollars.
Watch out taxpayers.
According to Ed -- housing consult -- FHA is operating in a reckless fashion.
Without the kinds of congressionally mandated capital cushions the law requires -- -- operating illegally.
He says -- the administration single family home program was forced to meet legal requirements the ones that banks need it would be insolvent.
The FHA is facing losses of forty billion dollars on just that part of their portfolio that where people are delinquent sixty days or more.
And that means -- the FHA would run through all of its -- -- reserves and then some.
I fear another big bailout a bailout we can't afford it's time to get government -- -- housing do we need anymore evidence.
I don't think so.
