Wednesday, March 31, 2010

Ticking Prime Bomb!: Fannie Mae Monthly Summary January 2010

Decades from now the summer of 2008 will likely be remembered to mark the turning point where legislative blundering took an otherwise serious financial crisis and molested it into an epic financial disaster.

By fully assuming the liabilities of Fannie Mae and Freddie Mac, the two colossal and corrupt (and conduit of corruptness funneling junk Countrywide Financial loans onto the implied balance sheet of the federal government) government sponsored enterprises, the federal government, led by Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke, thrust taxpayers into an abyss of insolvency with one mighty shove.

The following charts (click for larger ultra-dynamic and surf-able chart) show what Fannie Mae terms the count of “Seriously Delinquent” loans as a percentage of all loans on their books.

Notice that despite all the government gimmicks and manipulation the level of delinquency at these two mortgage giants continues to mount.

It’s important to understand that Fannie Mae does NOT segregate foreclosures from delinquent loans when reporting these numbers.

Finally, the following chart (click for larger ultra-dynamic and surf-able chart) shows the relative movements of Fannie Mae’s credit enhanced and non-credit enhanced (insured and non-insured) “Seriously Delinquent” loans.


  1. dagger12:57 PM

    These are still trending almost straight up, after all this time.

  2. Dager1:01 PM

    And no one's gone to jail or been held accountable in any way.

    Steal a billion and you've got a problem. Steal a trillion, you're rich and the taxpayers have a problem.

  3. Dagger,

    It is amazing that no one has been prosecuted yet... hundreds of junk originators (CountryWide looked totally lagit compared to some of the SubPrime originators) and no jail time... strange.

  4. Great website I’ve found and very inspiring! Great job!!

  5. Anonymous7:04 PM

    There is no ticking here of any kind as there government does not really have to sell these loans.

    Countrywide legit, are you feeling ok today?

  6. I know I'm not a financial expert, but the chart of seriously delinquent loans at Sallie Mae really does only go "up" to 6/100 of 1%, right? That's almost non-existent. That's less than 1/8 of 1/2 of a percent. And you think that is a ticking time bomb? At the scale being used, it looks ominous, but you're making a mountain out of a molehill--literally. Seriously, there are lots of real things to worry about. The other figures are more worrisome, so why not just focus on them?

  7. RevPaulD,

    Thanks... nice catch.. I messed up the data... it was off by a factor of 100 (quirky excel percentages).

    So now the chart reads right... roughly a 6 percent overall delinquency rate.

    Also, 6% may seem small but for a large mortgage portfolio it actually quite concerning.