Economy

Fannie, Freddie and You: What It Means to the Public (Sept 7 – NYT)

So what does the federal takeover of two mortgage finance giants mean to consumers?

Mortgage rates may fall a bit initially but probably not enough to halt the decline in home prices anytime soon. Some delinquent borrowers may have a better shot at modifying their loans and ending up with lower fixed payments. And the rules on new mortgages could slightly change.

Oh, and the federal government will help pay for it all, using your tax money.

FDIC shutters Silver State Bank of Nevada (Sept 5 – CNNMoney)

WASHINGTON (AP) — Regulators on Friday shut
down Silver State Bank, saying the Nevada bank failed because of losses
on soured loans, mainly in commercial real estate and land development.

It was the 11th failure this year of a federally insured bank.

Nevada regulators closed Silver State and the Federal Deposit Insurance
Corp. was appointed receiver of the bank, based in Henderson, Nev. It
had $2 billion in assets and $1.7 billion in deposits as of June 30.

The FDIC estimated its resolution will cost the deposit insurance fund between $450 million and $550 million.

U.S. Near Deal on Fannie, Freddie (September 6, 2008)

Plan Could Amount to Government Takeover

WASHINGTON — The Treasury Department is putting the finishing touches
to a plan designed to shore up Fannie Mae and Freddie Mac, according to
people familiar with the matter, a move that would essentially result
in a government takeover of the mortgage giants.

The plan is
expected to involve putting the two companies into the conservatorship
of their regulator, the Federal Housing Finance Agency, said several
people familiar with the matter. That would mean the government would
take the reins of the companies, at least temporarily.

It is
also expected to involve the government injecting capital into Fannie
and Freddie. That could happen gradually on a quarter-by-quarter basis,
rather than in a single move, one person familiar with the matter said.