Monday, August 20th, 2012, Columbia, Howard County, Maryland. The national general practice law offices of Charles Jerome Ware, P.A.: "Still working. Still committed. Still here to make a difference."
It surprises me. I never realized until last Friday (August 17th, 2012) that federally-backed mortgage grants Fannie Mae and Freddie Mac had been placed on a track for extinction.
The U.S. Treasury Department on Friday tightened its chokehold on the two giants by restricting its conservatorship over the agencies, and speeding up their "winddown". Now, all of Fannie Mae and Freddie Mac's present and future profits are locked up by Treasury and they are mandated to follow certain steps to otherwise wind down their assets in an expedited way.
As part of their new requirements, Fannie Mae and Freddie Mac must give every dollar of profit they make to the Treasury. Previously, they were only required to pay a fixed 10 percent dividend on the government aid, which totaled almost $19 billion a year.
Further, under the new requirements, Fannie and Freddie will figuratively have to "fire sale" or wind down their mortgage portfolios by an increased 15 percent a year, compared with the previous 10 percent.
[articles.philly.com/2012-08-18/business/fannie-and-freddie; (Twitter of Charles J. Ware), August 17, 2012, "Fannie Mae, Freddie Mac 'Winddown' Speeds Up: Update by Attorney Charles Jerome Ware"; (Blog), The Lawyer's Mailbox, Friday, August 17, 2012, "Fannie Mae, Freddie Mac 'Winddown' Speeds Up"]
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