Fannie and Freddie losses could be $448 billion

According to the estimate of Amherst Securities, Freddie Mac and Fannie Mae losses could reach 9.6% or $448 billion.

Amherst reasoned that once a borrower is 60+ days delinquent, the cure rate is “well under 10%.” Even if modified and returned to re-performing status, the re-default rate remains “unbelievably high.”

The U.S. Department of Treasury recently announced that Treasury would cover all loses at Fannie and Freddie.

January 14, 2010 by
 
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John Wake

Born in Phoenix, trained as an economist and now a licensed Realtor, John uses hard data from the real estate market to help his clients -- buyers and sellers of residential real estate -- uncover their best choices for finding the right home or finding a buyer for their current home.

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